NEW YORK, March 23, 2026, 13:24 EDT
Shares of Palantir Technologies climbed $6.22 to $156.90 Monday afternoon, picking up steam as investors responded to the Pentagon’s endorsement of its Maven battlefield AI project and a fresh bullish note from Wedbush. Wedbush’s Dan Ives stuck by his upbeat outlook, which helped drive the stock up roughly 5% earlier in the day, according to a Yahoo Finance report.
This push is notable: OpenAI and Anthropic are stepping up efforts in enterprise AI. On Monday, Reuters said both firms are pitching private-equity investors to embed AI tools within their portfolio companies. But last week, The Information suggested Palantir may actually be in a stronger spot to roll out AI agents—software built to handle routine office functions—inside big organizations.
Deputy Defense Secretary Steve Feinberg has directed Maven to transition into a formal program of record, Reuters reported Friday, locking in a dedicated budget and a spot in the Pentagon’s long-term acquisition plans. The move, set for completion by the end of this fiscal year, also means future Palantir contracts will be handled by the Army. Oversight, meanwhile, is slated to shift to the Pentagon’s Chief Digital and Artificial Intelligence Office.
“It is imperative that we invest now and with focus” to deepen AI across the Joint Force, Feinberg wrote, describing AI-powered decision-making as the “cornerstone” of U.S. strategy. Maven processes information from satellites, drones, and other sensors, helping military personnel pinpoint threats and targets. Reuters
Defense tailwinds are running into a more cautious note from Wall Street. Morgan Stanley’s Sanjit Singh, Keith Weiss, and Oscar Saavedra reiterated their equal-weight call on Palantir and left the $205 price target unchanged, but pointed out the stock is changing hands at 64 times their 2027 cash-flow estimate—38 times projected 2027 sales. That kind of valuation doesn’t allow for much disappointment.
The bank stopped short of a bearish call. Its field checks indicate U.S. demand is holding up, with confidence in Foundry — Palantir’s main software product — ticking higher. Morgan Stanley pointed to Ontology, which Palantir describes as a digital twin mapping data, models, and actions across an organization, calling it a moat that competitors would struggle to duplicate in the near term.
Bulls have fresh figures to lean on: Palantir last month reported a 70% jump in fourth-quarter 2025 revenue, and projected another 61% climb for 2026. Despite the company’s well-worn reputation as a government contractor, The Information pointed out last week that commercial sales are actually expanding faster than any other line of business.
Competitive pressure shows no signs of easing. According to Reuters, OpenAI is pitching private-equity firms a guaranteed 17.5% minimum return to support enterprise joint ventures. Reuters also notes that Anthropic—seen as historically stronger with enterprise clients—is chasing a similar strategy. “There’s a big race to lock in as much enterprise, as many desks as possible,” said Matt Kropp at Boston Consulting Group. Reuters
The bullish scenario isn’t without headaches. Reuters reported sections of Maven run on Anthropic’s Claude. If Palantir has to ditch Claude—after the Pentagon flagged Anthropic as a supply-chain risk—it may end up rebuilding big chunks of the platform. Joe Saunders, who heads RunSafe Security, told Reuters the switch “carries a substantial cost,” and vetting replacements for military networks might drag on for 12 to 18 months. Reuters
Morgan Stanley isn’t budging on Palantir yet. Analysts want to see more than a couple of solid quarters — they’re looking for consistent outperformance on revenue and earnings before reconsidering their rating. So the main hurdle remains unchanged: execution.
