Palantir Technologies Inc. (NASDAQ:PLTR) has already climbed more than 300% this year, with recent developments highlighting how the stock is showing no signs of slowing down. From advances in AI technology to its September inclusion in the S&P 500, the stock surge can be attributed to abundant growth triggers.
On December 3rd, Palantir Technologies announced a new government security designation, allowing it to handle sensitive US government workloads in its cloud offering. Following the announcement, Palantir Technologies Inc. (NASDAQ:PLTR) saw its stock climb approximately 7%, reaching $71.04. The company disclosed that it has been granted FedRAMP High Authorization for Palantir Federal Cloud Service (PFCS) and Palantir Federal Cloud Service – Supporting Services (PFCS-SS).
FedRAMP, or the Federal Risk and Authorization Management Program, is a government-wide program that establishes essential security and risk assessment standards for cloud services used by the federal government. Palantir’s recent milestone expands on its previous authorizations and reinforces its reputation as a reliable provider of secure cloud solutions.
A software company’s engineer staring at a computer monitor with intense concentration.
These authorizations, covering the complete range of Palantir Technologies’ product offerings and programs—including AIP, Apollo, Foundry, Gotham, FedStart, and Mission Manager—will enable the company to provide any of its product offerings to the U.S. Government at the FedRAMP High baseline.
“We’re proud to have achieved the FedRAMP High milestone for our full product suite, including our award-winning AI Platform (AIP), which is transforming the speed, scale, and efficiency with which the US Government can operate across civilian, defense, and intelligence agencies”.
– Akash Jain, CTO and President of Palantir Technologies Inc. (NASDAQ:PLTR) USG
While it is true that bureaucratic updates like these don’t spark much interest in investors, there is a lot that makes this government update interesting. For instance, the milestone highlights Palantir’s deepening ties with government agencies and the trust they have in Palantir’s platforms for handling sensitive data.
Moreover, the FedRAMP High Authorization not only reinforces Palantir’s competitive position in securing high-value government contracts but also demonstrates its ability to meet rigorous security and compliance standards, which could potentially open doors to new opportunities in the public sector.
In addition to securing key government authorizations, Palantir is a strong candidate for inclusion in the Nasdaq 100 index after transferring its stock listing to Nasdaq on November 26. The final decision, based on market value rankings, will be announced on December 13.
The move appears to aim at attracting retail investors and solidifying Palantir’s position as a major player in the AI sector, particularly given NASDAQ’s strong association with technology companies. Undoubtedly, Palantir is one of the best-performing stocks on the index this year.
While we acknowledge the potential of PLTR as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than PLTR but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.