Palantir Notches 17% Weekly Gain as Nvidia Deal and US Orders Offset European Friction

A strategic pivot toward sovereign artificial intelligence has handed Palantir its sharpest rally in weeks: the stock surged more than 17% over seven trading days. The catalyst is a deepening alliance with Nvidia that places open-source AI models inside air-gapped government networks, allowing agencies to retain full control of their data, intellectual property, and model weights.

Chief Executive Alex Karp has framed the move as a necessary rebellion against the opaque pricing models that dominate Silicon Valley’s AI labs. He dismisses the industry’s standard “tokenmaxxing” approach — charging per token rather than granting true ownership. Instead, Palantir pushes for open models where clients own both the computing power and the algorithm. That philosophy, laid out in a corporate manifesto on data sovereignty, has resonated strongly with the Pentagon and other US security clients.

The numbers underscore the appeal. First-quarter revenue hit $1.63 billion, an 85% jump from a year earlier. US commercial business more than doubled to roughly $600 million. Prominent investors have taken note: Cathie Wood’s ARK Invest acquired about 122,000 shares in late June, while former President Donald Trump continues to hold a multimillion-dollar stake. Meanwhile, noted short seller Michael Burry has been trimming his bearish bets against the company.

Should investors sell immediately? Or is it worth buying Palantir?

Yet the same sovereignty pitch that wins Washington is creating friction across the Atlantic. Spain recently advised state-backed companies to avoid new contracts with Palantir, citing national security concerns. France and Britain have grown uneasy about technological dependency on the US, even as Palantir functions as the de facto operating system for NATO. Regulators in those countries worry that deep integration with US defense infrastructure could compromise their own strategic autonomy.

Domestically, the company keeps adding to its government pipeline. The US Army selected Palantir’s software as the central data platform for a new command-and-control system. The company also took a small stake in regional aviation firm Surf Air Mobility. The debt-free balance sheet and growing roster of classified contracts create what analysts call a formidable moat: the physical separation from public networks locks in clients and discourages competitors.

Wall Street is largely brushing aside the European turbulence. The average price target stands at €160.53, with Wedbush leading the bull case at $230. The stock currently trades around €110, still well below its level at the start of the year. Technicians note that sustained institutional buying could soon test the 50-day moving average. For now, the combination of an Nvidia pact, an Army win, and retreating short sellers appears to have drawn a line under the earlier sell-off.