Palantir Technologies Surges 5% Following Major Partnership Announcement

Palantir Technologies (NYSE: PLTR) climbed up about 5% in the day, hitting a key resistance in an interesting trading area after they announced a new critical partnership with an industry expected to explode in revenue pulling in over the next decade.

Key Inflationary Data to Be Released

We also have key inflationary data that will be released tomorrow, and we see the markets that are starting to push the brakes a little bit. We are waiting to see what will happen with the probability of those first interest rate cuts. We also have some interesting things happening with Nvidia, so stay tuned because we have a lot to digest. I’m not a financial adviser; I’m collecting all the data and dispatching it to you.

Now, we see in the image above that Palantir Technologies is up about 5%, including the after-hours closing at $25.22. Now, what you see with Palantir Technologies right here is at $25.22 after they had the announcement of an important partnership that has helped bring acceleration and momentum back into the stock.

The volume right here is at 37 million, and right now, what you can see is that Palantir Technologies sits at an interesting resistance point. We’ve seen multiple touchpoints.

So, we’ll see what happens tomorrow, and I think the key inflationary data is going to have a major impact on what happens here. We’re starting to see short volume that is continuing to be low, which is very bullish from an institutional perspective, so things are looking healthy.

Important Partnership with Voyager Space

Now, let’s talk about Palantir Technologies and the important partnership that was established. They sealed a deal with Voyager Space. Now, big data analytics company Palantir Technologies sees the swing that applies after this major announcement that happened earlier in the trading session on Thursday morning. Voyager Space is a global leader in space exploration programs.

This agreement is going to focus on developing artificial intelligence systems in Voyager’s modern enterprise. Palantir Technologies really jumped on the implications of how AI can boost the space economy.

This partnership can help rapidly advance the space and defense technology sectors by integrating Palantir Technologies AI tools that have been very beneficial to various commercial clients. Expanding these two entities is going to be interesting to see. With Palantir Technologies, and specifically the exploration of AI capabilities in the space system, they are predicting more and continuing funds will be pulled into the space exploration sector, especially with AI being incorporated.

Market Predictions and Growth

You have BCC Research here saying that they predict that the market will reach a valuation of $2.5 billion in 2022. They predict that the sector of AI being involved in space exploration may reach $11.7 billion by 2028. That’s only four years from now, ladies and gentlemen, and this would imply a compounded annual growth rate of 29%.

So, if we see Palantir Technologies, which is ahead of the game, being involved with these different companies that are continuing to utilize AI within their space exploration programs and their actual projects and incentives, it is quite significant.

AI Software Demand and Nvidia’s Role

We could see market share that continues to pull into Palantir Technologies specifically. It is great to see there, and we see that the demand for AI software is also going to continue to grow, not just with space exploration but also as long as we see the chip demand continue to soar. Now, if we talk about chip demand, the number one thing that usually comes to our mind is NVIDIA, and they are basically, of course, the leading competitor in developing these AI chips.

Running these strong models will really depend on the demand and the power of these AI chips and utilizing the important software that these chips demand. That’s where Palantir comes in, and that’s why we think Palantir is going to continue to take off in the long run, as the models train using these types of chips will be required.

You can also see S&P Global Market Intelligence right here. They estimate that generative AI software, particularly, could grow to an annualized rate of 58% over the next five years to $52 billion in 2028.

So, it’s really cool to see here that we’re seeing a lot of entities coming together, a lot of firms and research firms explaining the amount of market capitalization that they are predicting will go into not just AI but specifically AI space exploration and AI software.

Palantir, right now, is one of the leading competitors within this industry, and I would really agree here in this article that they are making the most out of this opportunity as we’ve seen them really dive into the private sector with AIP. I mean, just look at the last few quarters, especially how AIP has really helped. I want to say accelerate and exponentiate the results that have been happening within Palantir Technologies.

That’s where we get to the next quarter earnings. It’ll be interesting to see what happens. The announcement date is estimated to be coming up in almost a month now. Guys, time does go quickly; on August 7th, right now, earnings per share are at 8 cents. We’re still seeing earnings per share revisions in the last 90 days, seven in the bullish direction and two in the bearish.

One thing that I particularly do like in this case scenario here is we’re actually seeing some bearish earnings per share revisions, and this is important because Wall Street has been continuing to set the bar at these really, really high levels. Eventually, sometimes, these companies just can’t keep up with the expectations that Wall Street wants them to fulfill.

So, if Palantir has a little bit more of a realistic approach, and we saw this with a change in the future guidance from the last quarter, this can keep things on track and maintain a correlation between what Palantir is expecting and what Wall Street is expecting, which keeps everybody happy across the board.

Now, things for the market: this is what’s going to be happening tomorrow. We have the FED that will be looking at PCE index data, the expenditure index, and what’s going to be happening with inflation. We see key semiconductor stocks in red. Here, we have Micron shares that actually slipped more than 7% after we saw fourth-quarter revenue guidance that was in line with estimates.

They did not beat what Wall Street expectations were. NVIDIA had an effect on that, and we saw them dipping about 1.9%.

Federal Reserve’s Inflation Data

What we said: the preferred measure of inflation that’s going to be released is the core Personal Consumption Expenditures (PCE) Price Index. Can’t talk tonight, sorry, which is the Fed’s preferred measure of inflation. Now, they expect PCE data to rise 0.1% month over month and 2.6% from the year-earlier period. Now, we’re expecting what traders are really hoping for the continuation of these easing pricing pressures.

We’re going to see this through this specific PCE data that could cement—I like that word, really cement—and solidify the likelihood that the Fed is going to continue to lower interest rates later this year. We’re going to see a lot of volatility tomorrow; that’s my prediction.

Market Reactions and Predictions

However, should the PCE data disappoint, and we’ve seen a few months of good inflationary reports that show us signs that inflation is continuing to cool. However, if we see stagflation headlines hitting the tape and the data does not look like what Wall Street was expecting, we could see some changes and some selling pressure that continues within the market.

However, throughout this year, every time we’ve seen things that don’t agree with the inflationary data, we usually have a selloff or a pullback within one market day, but that’s typically been washed out the next trading day just due to the demand that we’re seeing, especially with Nvidia, which has really been holding up the broader market. We’ve talked about Nvidia’s influence on the whole market, and it is pretty astonishing.

Right here, talking about that, we’ll just quickly talk about why they’re treading water today. Mostly, they’re saying it’s thanks to Micron Technology. We saw shares come down about 7%, and with their future guidance that was changing, we see uncertainty in the chip market. Nvidia just kind of has a lingering effect, and it also operates in the semiconductor space alongside Micron.

So, nothing particular with Nvidia looks bad that we’ve seen in the headlines; it’s just more of a catalyst or domino effect that we’re seeing from Micron. So, it’s interesting to see.

Conclusion

What do you think is going to be happening with Palantir Technologies, especially sitting at this resistance point at 25? And what do you think is going to be happening with the key inflationary data? It’ll be exciting to see what happens as we go into the weekend. Peace out, take care, and have a wonderful day!