Palantir’s Stock Price Carves Out Gains In Pre-Market With S&P 500 Addition

Palantir's stock (NYSE: PLTR) is a big pre-market mover this morning, adding 6.82%. The key player in the artificial intelligence (AI) industry, is drawing attention in financial markets for its notable performance and addition to the S&P 500.

PLTR has been one of the best performers through 2024 to date, with gains of 82.93% before this mornings acceleration brining the firm to a market cap of ~$68 billion. Joining the S&P 500 index is a significant milestone for any stock, with the volume of funds that are tied to the index significantly aiding demand and liquidity.

With the AI industry shifting, but remaining in focus, companies like Palantir are continuing to build a strong following of shareholders, both retail and institutional.

The AI research landscape has experienced a significant shift, moving from an academia-centric focus to an industry-led dominance. Up to 70% of top AI talent is now employed by businesses, which also lead in AI investment and research. Industry-trained AI models far exceed those trained in academia, highlighting the industry's higher computational capacity and more abundant resources .

Despite the U.S. government allocating $1.5 billion for academic AI research in 2021, this figure pales in comparison to corporate investment in the field. For instance, Google spent the same amount on just one AI project within a single year, illustrating the vast scale of corporate funding and commitment to AI development .

Palantir's recent performance bolsters optimism, with the company reporting a year-over-year improvement of 27% in Q2 2024, marked by significant growth in both U.S. commercial revenue and government contracts .

The company's strategic partnerships have played a crucial role in its ascent. With diverse collaborations, including one with Wendy’s for AI-driven supply chain optimization, a deployment of an AI operating system with the Department of Defense, and endeavours to fortify national security alongside Microsoft using AI, Palantir is cementing its standing as a versatile and innovative AI firm .