Analysts at Daiwa elevated Palantir to a Buy rating, citing the company’s recent shift toward securing larger, high-value AI contracts with enterprise clients. The upgrade reflects confidence in Palantir’s expanding deal pipeline and growing position as a strategic AI partner for major corporations.

Palantir extended its relationship with Airbus through a multi-year agreement to continue powering the Skywise civil aviation data platform. The renewal—built on over a decade of collaboration—underscores Palantir’s role in enhancing aircraft design, operational efficiency, safety and sustainability for Airbus.

Palantir reported accelerating revenue growth in its fourth quarter, marking another period of strong top-line momentum as clients ramp up AI spending. While specific figures have not been disclosed, the company’s continued growth trajectory reinforces its standing as a leading commercial AI provider.

Despite these positives, some strategists, including Eddie Ghabour, advise caution, forecasting that elevated sector valuations and rotational flows could pressure tech stocks in the second quarter. Investors are weighing Palantir’s growth potential against broader market headwinds and high earnings expectations.