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Palantir (PLTR) has been the second most-watched stock on Wall Street, right after Nvidia (NVDA). The stock has delivered multibagger returns that shattered even the most bullish projections and has broken the rules on just how much investors are willing to pay.
Unfortunately, that performance has taken a turn for the worse in recent weeks.
Palantir rallied through 2024 and into early 2025 alongside a bull market run in the broader indexes like the S&P 500 ($SPX). Selling PLTR stock seemed like a bad idea back then, as you could lose out on more gains. Investors were shrugging off astronomical valuations. Indeed, it wouldn’t be a stretch to expect the mania to make PLTR trade at 1,000 times earnings.
That AI hype is now gone. And without those tailwinds, Palantir’s stock has stalled and has declined nearly 40% from its peak price. Given the decline, should you consider buying the dip? Let’s take a look at what has happened.
Palantir’s Mobile Battle Station Contract and Stock Outlook
Palantir recently began delivering its Tactical Intelligence Targeting Access Node (TITAN) mobile battle stations to the U.S. Army under a $178 million contract. It is now transitioning from being primarily a software provider to a major defense contractor.
The TITAN systems integrate Palantir’s artificial intelligence technology to enhance situational awareness and targeting precision for soldiers, so many investors believe this could drive up demand for Palantir’s software products, too, if the government expands its partnership.
The TITAN program could expand significantly if full-rate production is approved after 2026. The U.S. Army estimates acquiring between 94 and 150 units. In the best-case scenario, up to $1.5 billion in additional revenue could go toward Palantir.
These government contracts are sticky sources of revenue and have been one of the key reasons investors are so willing to pay a premium for PLTR stock.
Should You Buy PLTR Because of the TITAN Contract?
The announcement of the TITAN contract in March 2024 initially caused Palantir’s stock to surge nearly 10% on March 6, 2024. However, analysts have noted that despite this contract, Palantir’s revenue trajectory has not significantly outpaced earlier trends.
This is a small contract compared to Palantir’s size. And given the double-digit surge on its announcement, this was already priced into the stock. Palantir rarely fails to meet commitments, so news of successful deliveries isn’t something to be ecstatic about.
With that in mind, I wouldn’t buy the dip on PLTR solely because of TITAN deliveries.
Is Palantir Stock a Buy or a Sell?
If we look beyond this contract and zoom out, Palantir is on solid footing. It’s hard to argue against this business.
It’s also hard to argue in favor of paying 636 times trailing earnings for the stock. You’re going to need an extremely bullish market to maintain that valuation, let alone expand it. Considering the lack of good news coming out of macroeconomic data and the trade war uncertainty, it’s likely that any PLTR recovery is going to be short-lived.
Still, if you’re confident that the market will start rallying again, PLTR can deliver returns.
The mean price target of $85.11 implies roughly 2% upside potential.
A “Hold” rating seems to fit PLTR the best. Lingering uncertainty will push it lower, but a short-term recovery may be around the corner after so many red candles.
