Company Palantir Technologies Inc. NASDAQ: PLTR it grew more than 20% in the last week of May. There were several reasons for that, not the least of which was a report from the Wall Street Journal suggesting that the US government may be directly subsidizing domestic drone companies. The policy implications may be questionable, but that would undoubtedly be bullish for PLTR.
Palantir's drone opportunity may be just the beginning
Palantir Technologies Today
Palantir Technologies
As of 06/1/2026 04:00 PM Eastern
- 52 week interval
- $118.93
▼
$207.52
- The P/E ratio
- 180.51
- Target Value
- $192.76
Palantir software supports many drone applications and autonomous systems.
The company is already firmly engaged with the Department of Defense through the MAVEN program.
The nature of warfare and the need for operational security make it impossible for the company's capabilities to be fully realized.
Drones are among the fastest growing segments of modern defense procurement.
The main reason for the stated need for a defense budget of more than $1 billion is the need to significantly increase the country's defense capabilities, with drones playing an important role. They are “cheaper” compared to conventional weapons and do not require a human pilot.
Palantir is positioned as the connective tissue between platforms and decisions that inform. Its software not only processes drone data, but also converts that data into actionable intelligence at machine speed.
It's not a stretch to suggest that Palantir will benefit from spending more money on a defense platform that will provide a showcase for its technology. The opportunity is not that Palantir is building drones, but that drones are creating a growing demand for the kind of data integration and command software that Palantir already sells.
Dell Report Offers Further Evidence That Software Selloff Is Overdone
This earnings season has been a matter of confidence but make sure it's related to software stocks. It wasn't enough for Palantir to deliver a solid report. But if companies like it Dell Technologies NYSE: DELLon the hardware side and Snowflake NASDAQ: SELECT at the data software layer of the AI stack tells the same story, it's hard to ignore.
Palantir sits at the operational layer of the AI stack. And right now, it's benefiting from one person standing in that space. A recent product launch from Dell helps explain why investors are reevaluating PLTR.
At the company's Dell Technologies World event in May, Dell unveiled a product that uses Palantir's Foundry software and AIP within the Dell AI Factory powered by GPUs from NVIDIA Corp. NASDAQ: NVDA. Specifically, Palantir's Ontology layer will be used in Dell ObjectScale and PowerFlex storage, both of which are aimed at protecting private and managed customers who won't put sensitive data in the public cloud.
The PLTR Chart Tells Its Own Story
The Dell partnership underscores something broader: critics' “expensive” label pin on PLTR misses the point. When the hardware and infrastructure layer is built around your software, the premium is a feature, not a bug.
However, PLTR has never been a stock for the faint of heart. Although it has had many ups and downs over the past two years, the Bears have been in control for most of the past eight months.
The stock has been trading in a defined range for most of 2026. The recent rally may have confirmed the low, but it may also have set a short-term ceiling.
During midday trading on June 1, PLTR found resistance at the $161 level, which is also in line with the 200-day moving average.
Unless the stock goes higher, this move will confirm that PLTR is in a consolidation phase. However, volatility like this is the cost of holding a stock like PLTR. You have to live in it to win it. Investors sitting on the sidelines may miss out on the strongest returns.
Watch What They Do More Than What They Say
When it comes to understanding PLTR's superiority, it's important to separate the news from the noise.
Palantir Technologies Stock Forecast today
$192.76
Best exchange rate of 19.99%.Buy Medium
Based on 31 Analyst Ratings
| Current Price | $160.65 |
|---|---|
| High Forecast | $255.00 |
| Average prediction | $192.76 |
| Low Prognosis | $90.00 |
Palantir Technologies Stock Forecast Details
For example, for all the hand-wringing about stock valuations, analyst sentiment still applies.
Even after the 20% rally, PLTR is still about 20% below the analyst consensus price of $193.
Also, institutional purchases do not decrease. It's no longer a matter of institutions owning PLTR due to its inclusion in the S&P 500 and NASDAQ 100, it has become a must-own stock for investors buying into the long-term AI growth story.
The next obvious catalyst for Palantir may come from its earnings call in Aug. 3.
As many institutions close down for the summer, going up is not a guarantee. In fact, it's likely that PLTR will have another similar choppy move in the low summer volume.
However, investors who bought PLTR at around $130 have been rewarded once and will be rewarded again if the stock gives up these recent gains.
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