PLTR Stock Watch: What to Know as Palantir Teams Up With Nvidia

Palantir (PLTR) stock rallied on June 29 after the company announced a strategic partnership with Nvidia (NVDA) to deploy open AI models within classified and air-gapped U.S. government systems.

The collaboration integrates Nvidia’s Blackwell Ultra GPU architecture and Nemotron open-source models with Palantir’s AIP, Ontology, Foundry, and Apollo technology stack, creating what both companies describe as an “intelligent engine” for sovereign AI deployments.

Despite today’s gains, Palantir stock remains down about 35% year-to-date. 

Does the Nvidia Deal Warrant Buying Palantir Stock

The Nvidia-Palantir team-up specifically targets U.S. government departments and critical infrastructure organizations that require on-premises AI capabilities without reliance on commercial cloud services, addressing data sovereignty concerns that prevent sensitive information from migrating into closed model weights.

This partnership is not entirely new territory for the two companies, as they demonstrated a collaborative AI framework at Nvidia’s GTC conference in Washington in October 2025 and subsequently launched the “Chain Reaction” domestic AI infrastructure program in December 2025. 

Today’s announcement effectively productizes that relationship for the sovereign artificial intelligence marketplace, though neither company disclosed specific agency clients or financial terms. 

PLTR shares inched higher because the partnership hardens its dominance in classified AI, expands high-margin government workloads, and embeds AIP into NVDA’s “sovereign-grade” compute stack.

But Nvidia shares remained somewhat flat on Monday, underscoring an emerging rotation from semiconductor stocks toward software application-layer companies.

What Else Makes PLTR Shares Worth Owning

The timing of this announcement is significant given PLTR’s year-to-date downturn – exacerbated in June by expectations of a rate hike, EU contract headwinds, including a potential loss of the  UK NHS Federated Data Platform engagement, France’s reported pivot toward domestic competitor ChapsVision, and increasing competition from Anthropic in enterprise AI procurement.

That said, the broader market context favors Palantir shares’ positioning. 

On Friday, the iShares Expanded Tech-Software ETF (IGV) and SPDR S&P Software ETF (XSW) each surged nearly 4%, while the VanEck Semiconductor ETF (SMH) declined 4%, marking one of 2026’s widest divergences between the sectors. 

Monday maintained this pattern, suggesting investors are redirecting AI-related capital toward application-layer companies rather than chip manufacturers. 

Moreover, PLTR stock’s fundamentals remain robust, with Q1 sales of $1.63 billion representing 85% year-on-year growth and U.S. government revenue surging 84% to $687 million, bolstered by the $10 billion Army Enterprise Agreement and the NGC2 program selection.

What’s the Consensus Rating on Palantir?

Despite the year-to-date pullback, Palantir shares are trading at a rather stretched 97x forward earnings, a valuation multiple that notable investors like Michael Burry have called unsustainable.

Still, Wall Street analysts continue to recommend looking beyond valuation concerns. According to Barchart, the consensus rating on PLTR remains at “Moderate Buy,” with the mean price target of about $194 signaling potential upside of more than 65% from here. 

Note that famed investor Cathie Wood also accumulated roughly $3.3 million in PLTR shares during the recent selloff. 

The next critical catalyst arrives Aug. 10 when Palantir reports Q2 earnings, with analysts calling for $0.34 in earnings per share (EPS) on revenue of $1.79 billion in revenue (at least), with investors expected to monitor whether the Nvidia collaboration contributes to pipeline or backlog growth.

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