Palantir stock spikes 11% as the AI firm inks $178 million contract with the US Army

• Palantir stock climbed by 11% on Wednesday after news it signed a deal with the US Army.
• Palantir won a $178 million deal to work on the Army's project TITAN, an AI-fueled battlefield system.

Shares of Palantir Technologies climbed 11% on Wednesday following the announcement of a $178 million contract with the US Army to work on an artificial intelligence-powered battlefield system.

The stock was trading at $26.39 at 12:15 p.m. in New York, after closing on Tuesday at $23.81.

The Army Contracting Command awarded the contract to Palantir to develop and deliver the Tactical Intelligence Targeting Access Node, or TITAN, an AI technology that will enable targeting information for "long range precision fires" and mission command, according to a press release.

"Building on Palantir's years of experience bringing AI-enabled capabilities to warfighters, Palantir is now proud to deliver the Army's first AI-defined vehicle," Akash Jain, President of Palantir USG, said in a statement. "Soldiers deserve best-in-class technology that gives them the tactical advantage on the battlefield, allowing for real-time decisions at critical speeds."

The TITAN system will also incorporate contributions from Northrop Grumman, L3Harris Technologies, Anduril Industries, and other defense names, the release said.

Wall Street cheered the news, as it has for similar AI announcements across the stock market. Palantir is among a group of tech names that have ridden the wave of AI enthusiasm in recent weeks alongside companies like Nvidia, Super Micro Computer, SoundHound AI, Microsoft, and more.

"The Messi of AI gets major Army contract," Wedbush strategist Dan Ives said in a Wednesday post on X, referring to Lionel Messi, the Argentine soccer superstar. "Government deals humming along with the AI Revolution, perfect storm of demand playing out. This TITAN deal another validation for Karp & Co."