Palantir leaps 15% after revealing partnership with IBM on artificial-intelligence applications
- Palantir soared as much as 15% on Monday after the firm revealed a new partnership with IBM.
- The companies will collaborate on an artificial intelligence product meant to help businesses leverage large data sets.
- Palantir has surged through the new year amid strong retail-investor demand and encouraging deal news.
- Watch Palantir trade live here.
Palantir ripped as much as 15% higher on Monday after the company unveiled a partnership with IBM on a business-focused artificial intelligence product.
The analytics giant plans to pair its app-building platform with IBM's cloud-data service to create an AI tool for businesses, according to a press release. The collaboration is expected to help businesses access and analyze swaths of cloud data without the need for deep technical know-how. The firms aim to roll out the product in March.
Nearly three-quarters of businesses surveyed by IBM said they are experimenting with or implementing AI in their operations, the company said. Yet just 37% of respondents named "limited AI expertise" as a hurdle toward using such applications. Increased data complexities were deemed an obstacle by 31% of businesses.
The product, named Palantir for IBM Cloud Pak for Data, is planned for businesses in retail, financial services, manufacturing, and telecommunications, among other sectors.
IBM gained 1.8% at intraday highs.
Palantir's climb extends gains made through the end of last week. Shares closed 6.2% higher on Friday after the company announced it would expand its partnership with BP. The "multi-year, multi-million dollar deal" aims to help BP reach net-zero emissions by 2050, according to a press release.
The data giant's stock price has also benefited from strong retail-investor demand in 2021. Members of the r/wallstreetbets forum who drove GameStop, AMC, and other highly shorted stocks higher have also touted Palantir as a favorite pick. Shares sit roughly 49% higher year-to-date.
Palantir traded at $37.60 as of 10:44 a.m. ET Monday. The company has two "buy" ratings, three "hold" ratings, and three "sell" ratings from analysts.
