Palantir Technologies Inc. has seen its stock surge between 74% and 77% year-to-date in 2025, trading around $132 per share and reaching a valuation of approximately $314 billion. This performance makes Palantir the second-best-performing stock in the S&P 500 for the year and follows a 340% gain in 2024 and a 167% gain in 2023. The company's rally is driven by its artificial intelligence-powered data analytics software and a series of major U.S. federal government contracts under the Trump administration. Notable deals include a $30 million contract with U.S. Immigration and Customs Enforcement, a partnership with Fannie Mae for AI crime detection tools, and a $795 million agreement with the Department of Defense's AI division, in addition to a prior $480 million contract. Palantir's U.S. government revenue reached $375 million in the first quarter, up 45% year-over-year, with total quarterly revenue at $883.9 million, a 39% increase from the previous year. The company also reported commercial U.S. revenue growth of 71% year-over-year, surpassing a $1 billion annual run rate. Palantir's client base includes NATO and several U.S. government agencies, with the Department of Defense doubling its use of the Maven AI system. The company projects 2025 sales of $3.9 billion, a 36% increase from the previous year, and expects free cash flow to top $1.5 billion. CEO Alex Karp highlighted the firm's 'rule of 40' score of 83% in the first quarter as a key metric of success. Despite trading at over 100 times sales and 205 times projected earnings, Palantir continues to attract both institutional and retail investors, with retail traders investing a net $170.3 million in the last five days. The stock is seen as a major beneficiary of the so-called 'Trump Trade' and remains a focus for investors amid ongoing enthusiasm for AI and government technology spending.