Catenaa, Tuesday, March 03, 2026- Palantir Technologies, which gets about half its revenue from US government and military contracts, has its five-session gain to 11% despite the loss by 1% on Tuesday.

The rally started last week as President Donald Trump ratcheted up threats against Iran, and it is continuing amid military strikes by the US and Israel on the country.

The Trump administration expects the fighting to potentially last for weeks, while Iranian officials say it will probably go on for longer.

The stock, which has long been treated skeptically by analysts due to its extreme valuation, was upgraded by at least eight firms last month amid a slump that sent Palantir shares down 38% from a record high on November 3 to a February 24 low.

The plunge came amid a barrage of criticism from investor Michael Burry of fame centered on concerns about the company’s valuation and potential for growth, as well as scrutiny of its business dealings with US Immigration and Customs Enforcement and the Department of Homeland Security.

Palantir has been a major US government contractor for years, working largely with the military and ICE.

In 2024, it received a $100 million contract for its Maven Smart System, an AI-enabled battle management platform system that aggregates military data.

And last summer, the company received a $10 billion contract from the US Army that the government said will reduce procurement timelines, “ensuring soldiers have rapid access to cutting-edge data integration, analytics and AI tools.”

The risk, however, remains the company’s pricey market valuation. It’s among the five most-expensive stocks in the S&P 500 Index, with a multiple of roughly 104 times expected earnings over the next 12 months.

And at 45 times estimated sales over the next 12 months, it’s the priciest stock in the benchmark.