Palantir Stock Hits New High as AI Momentum Withstands NYT Criticism and Musk Controversy

Palantir Stock Hits New High as AI Momentum Withstands NYT Criticism and Musk Controversy

Palantir Technologies (NYSE: PLTR) reached a new high this week, demonstrating remarkable resilience amid a flurry of headlines involving critical media coverage and peripheral drama from high-profile tech figures. The stock’s rise underscores the enduring investor enthusiasm for artificial intelligence (AI) and Palantir’s position as a leader in the sector, especially in AI-driven data analytics and government software contracts.

On Thursday, Palantir stock climbed past its previous 52-week high, closing at levels not seen since 2021. The surge comes despite a recent New York Times article questioning Palantir’s deep involvement with military and intelligence agencies, and a surrounding debate about the ethical implications of its AI platforms. Critics have long raised concerns over the company’s software being used in warfare, surveillance, and law enforcement, but those concerns have largely taken a back seat to the company’s consistent financial performance and strategic relevance in the AI race.

Adding to the noise was an unrelated but attention-grabbing controversy involving Elon Musk, who recently made cryptic comments on X (formerly Twitter) about “shadow AI wars” and hinted at tensions with other AI firms. Although Musk did not directly mention Palantir, speculation swirled online, briefly raising questions about inter-company dynamics within the AI space. However, investors appeared unfazed.

“Palantir has always operated in a complex ethical landscape,” said Dan Ives, managing director and senior equity analyst at Wedbush Securities. “But what’s driving the stock today is its robust pipeline of AI contracts—both with the U.S. government and increasingly with commercial clients. The market is starting to price in the company’s long-term role in enterprise and defense AI.”

Indeed, Palantir has capitalized on its early-mover advantage in AI. Its platforms—Gotham for government agencies and Foundry for businesses—are known for their ability to handle vast quantities of sensitive, real-time data. In the current AI boom, where trust, security, and transparency are top priorities, Palantir’s proven track record in mission-critical environments makes it a standout.

Earlier this year, the company reported its sixth consecutive profitable quarter under GAAP accounting standards—an achievement that has added credibility to its long-term viability after years of skepticism post-IPO. Palantir also increased its full-year revenue guidance, citing rising demand for its Artificial Intelligence Platform (AIP), which helps organizations quickly integrate and operationalize AI models with their existing data systems.

Despite the controversies, Palantir’s momentum shows no signs of slowing. The company continues to expand its reach beyond government into industries like healthcare, manufacturing, and finance—sectors where secure, explainable AI is increasingly essential. It also recently announced expanded collaborations with cloud providers to further scale its software delivery.

Still, analysts caution that Palantir’s valuation remains lofty, and any slowdown in government contract growth or a broader tech correction could weigh on its stock. But for now, it appears that investors are betting on Palantir not only surviving the AI hype cycle—but helping define it.

As the AI sector matures, Palantir is positioning itself as more than a defense contractor turned software firm—it’s aiming to be the go-to operating system for AI in high-stakes environments. And so far, Wall Street is buying in.