Palantir (NYSE: PLTR) stock price surged ahead this week as demand for AI companies jumped. It also soared after the company won a major $178 million contract with the US Army. It jumped to a high of $27, its highest point since September 21st, giving it a market cap of over $57 billion.

PLTR stock’s surge is in line with the performance of other AI stocks like Nvidia, Soundhound, and Super Micro Computer (SMCI). Other AI assets like Fetch AI, SingularityNET, and Corgi AI have also surged recently.

The stock also surged after the company beat RTX for a lucrative $178 million TITAN order with the US Army. This deal will see the company build 10 TITAN prototypes and integration of new technologies.

The order will see the company lead other companies like Anduril, Pacific Defense, and other firms like Sierra Nevada and Northrup Grumman. It also confirmed what an analyst at William Blair had predicted recently. 

The order came a few months after the company won another large contract with the UK’s National Healthcare Service. The NHS is using Palantir’s Foundry solution to capture and improve patients data.

If the deal is successful, it also means that other healthcare organisations will turn to Palantir for its advanced systems.

These events are happening at a time when the company has published encouraging financial results. Its recent results showed that its revenue accelerated by 20%, helped by large orders from corporate customers. Its AI platform known as AIP had a 70% YoY revenue growth, leading to an annual revenue of $2.2 billion. 

The growth of its commercial division is a positive thing since Palantir is widely known for its government work. Analysts believe that its commercial revenue will ultimately catch up with the government one soon.

Palantir has also turned pages and become a highly profitable company. Its net income for the year came in at $210 million. The company had lost over $2.5 billion in the previous four years combined. This profitability growth will likely continue in the coming years.

The daily chart shows that the PLTR share price has been in a strong uptrend in the past few months. Most recently, the stock climbed above the crucial resistance point at $21.80, its highest point in November. It has formed what is known as a gap-and-go move after it reported strong financial results.

Palantir remains above all moving averages while the Average Directional Index (ADX) has moved upwards and is above 30. Therefore, the outlook for the stock is still bullish as the AI hype continues. If this happens, it could move to above $35 soon.

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