Palantir Technologies entered the week pulled in opposite directions. On one side, a dramatic analyst upgrade and an expanded Nvidia partnership signaled robust commercial momentum. On the other, a pair of European governments are quietly reconsidering their reliance on the US data platform, and the stock’s technical picture remains bruised.
The bullish case arrived with force. President Capital lifted Palantir from neutral to buy and boosted its price target from $25.50 to $133 — a fivefold increase that reflects the firm’s conviction in the company’s government contracts. The move comes after a 27% slide in the shares over the past 30 days. UBS analyst Karl Keirstead added to the chorus, arguing the stock is undervalued at 46 times estimated free cash flow for 2027. He forecasts annual growth of roughly 55% over the next three years, citing Palantir’s ontology layer as a structural advantage that rivals will struggle to replicate.
Alongside those upgrades, Palantir and Nvidia deepened their partnership. Nvidia’s Nemotron large language models will be woven into Palantir’s Sovereign AI Operating System, a product tailored for US government agencies and operators of critical infrastructure — especially those working in air-gapped networks without cloud connectivity. The goal is to let agencies train and run AI models on their own data without breaching security perimeters. Palantir also struck deals with Surf Air Mobility and Zeta Global; the latter is expected to generate more than $100 million in annual revenue through the migration of Zeta’s data cloud onto the Foundry platform.
Yet even as these catalysts land, a different narrative is taking shape in Europe. Reuters reported that France’s domestic intelligence service, the DGSI, plans to replace Palantir’s tools with those of local provider ChapsVision. Palantir contested the report, stating its long-term DGSI contract remains in force, but Le Monde framed the move as part of a broader sovereignty push around sensitive state technology — a political decision, not a simple software swap.
Across the Channel, the same theme surfaced. Britain is reviewing its Palantir contract with the National Health Service under political pressure from MPs and critics who have questioned the American company’s role in the country’s health data infrastructure, with an exit clause emerging as a point of focus. These episodes are not isolated procurement disputes; they represent a structural risk for a company whose deepest advantage — deep integration into sensitive institutions — also makes it a target for national-security debates.
Should investors sell immediately? Or is it worth buying Palantir?
The stock price reflects the tension. Palantir closed Monday at €101.24, roughly 44% below its 52-week high of €179.98 and nearly 29% lower since the start of the year. Its relative strength index sits at 37.9, a level that historically attracts bargain hunters but remains far from any sign of momentum. The shares trade about 13% below their 50-day moving average and more than 25% below the 200-day line. With 30-day annualized volatility near 60%, any piece of news can move the tape sharply.
Inside the company, signals are mixed. Cathie Wood’s ARK funds have been accumulating shares, while Citadel slashed its position by 40%. More troubling for retail holders: CEO Alex Karp sold roughly $126 million worth of stock over the past 90 days — hardly a vote of confidence.
There is, however, a counter-current that could ease adoption friction. Palantir announced availability on the Google Cloud Marketplace, including integrations between BigQuery and Foundry, and between Gemini and the AIP platform. If customers can procure Palantir through existing cloud channels and connect it to familiar tools, the platform becomes less of a standalone bet and more of an operational layer within existing infrastructure — strategically useful at a time when public-sector clients are asking harder questions about control.
Palantir’s market capitalisation stands at roughly €238 billion, a premium that demands a high degree of trust. The question is no longer simply whether AI demand will grow — it is whether Western institutions will outsource their most sensitive operational intelligence to a single US platform. The answer, for now, remains deeply uncertain.
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