PLTR Stock Rally Intact After Best Quarter In A Year — Retail Watches Cautiously As Palantir Adds Data Center Partner

Palantir has partnered with Armada to expand its sovereign AI strategy from software into physical computing infrastructure.

• Armada’s modular data centers will support Palantir’s Sovereign AI Operating System.
• Palantir shares gained 60.3% in the July-September period, marking their strongest quarterly performance since last year.
• Valuation remains elevated, with PLTR trading at more than 100 times forward earnings despite continued rapid growth.

Palantir Technologies (PLTR) on Thursday named Armada as its inaugural certified modular data center partner, as the AI software company looks to meet growing demand from governments and enterprises seeking greater control over their AI infrastructure.

Under the partnership, Armada will provide its Galleon line of modular data centers to support Palantir’s Sovereign AI Operating System. 

The companies said the combined offering will let customers run open-weight AI models on computing, data, and physical infrastructure they own and control, with deployments possible in months rather than years.

PLTR stock rose 0.4% in overnight trading, extending its recent momentum. The stock gained 60.3% in the three months through September, its best quarterly performance since the April-June quarter last year, and is now trading near an all-time high. 

Palantir-Armada Partnership

Armada provides modular data center infrastructure designed to bring computing capacity to locations where traditional data center construction may be difficult or slow. Its Galleon systems combine computing, power and cooling infrastructure in a modular format, while its software platform monitors deployments and its Sovereign AI Grid connects multiple sites.

For Palantir, the partnership extends its Sovereign AI strategy beyond software and into the physical infrastructure powering AI models.

The company’s offering combines its AI Platform, Ontology, Foundry and Apollo software with infrastructure that customers can physically own. The strategy targets organizations that want their AI models, proprietary data, and hardware to remain within their own security and regulatory boundaries rather than relying entirely on external cloud providers.

Palantir’s Business Continues To Soar

Palantir continues to post exceptionally strong financial results. Revenue jumped 93% year over year in the second quarter, and the company raised its full-year outlook.

For the stock, valuation remains a key consideration, with Palantir trading at a substantial premium to many software and AI peers. The stock trades at more than 100 times forward earnings, compared with 26 times for Microsoft and 30.4 times for ServiceNow, according to Koyfin.

The shares also face questions over how much future growth is already reflected in the price.  

Cathie Wood’s ARK Trims PLTR Stake 

Cathie Wood’s ARK funds have repeatedly trimmed their Palantir stake this year, including after its August earnings-driven rally. 

On Thursday, the funds sold roughly $4 million worth of Palantir shares, according to the firm’s daily trading disclosures. ARK has continued to hold Palantir across several funds despite the sales. 

Retail View On PLTR

On Stocktwits, retail sentiment toward PLTR dipped over the past week and was ‘neutral’ on Thursday, as traders watched for the stock to reach the psychologically important $200 level.

“$PLTR If we close at $195 tomorrow, that’ll be a great day. If we hit $200 at the close, that’ll be pure magic,” said a trader.

On the Armada partnership, a trader wrote: “$PLTR this partnership gives Palantir a packaged answer: Palantir software + NVIDIA compute + Armada physical infrastructure. That potentially lets Palantir sell a much more complete AI system rather than just software.”

Palantir shares closed at $190.04 on Thursday and are up 7% year to date.

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