Can Palantir (PLTR) Maintain $25 level with Buying Opportunity Back

And there have been a buzz over artificial intelligence stocks to consider on top of Nvidia rally which diminish. As of yesterday’s close price (27 June 2024), Palantir stock price went above $25 with 4.65% gain at $25.22.

As of 27 June, PLTR stock had advanced 46.88% in 2024. And Palantir stock has found support above its 50-day moving average.

On 29 May, Palantir announced that U.S. Army has extended Palantir's existing Maven Smart System (MSS) contract for five years. Palantir was one of the early contractors for Project Maven, launched in 2017. Project Maven is part of the U.S. Army's effort to bring artificial intelligence to the battlefield. The Maven contract brings in about $90 million annually according to one analyst estimate.

Also, Palantir announced that the Department of Defense Chief Digital and Artificial Intelligence Office (CDAO) awarded a contract that could be worth $480 million over a 5-year period.

If you look at the below chart, 29 May 2024 is the time when Palantir start to make its move above the 50-day period, after hitting one of its lows.

Palantir hosted its fourth AIP event on 06 June, it continues to make progress with its "Artificial Intelligence Platform," initially rolled out in early 2023. At AIPCon4, Palantir said over 70 customers presented their prototype to production-grade AI use cases via Palantir's "bootcamps,". More than 1,300 AIP bootcamps have been completed since 2023, including 900 this year and nearly 500 since March.

But there is no pricing disclosed for Palantir AI products. there is something that investors are looking for as they have seen enterprise software stocks under-performed in general in 2024 so, they do not expect software makers to monetize generative AI, or "conversational AI," in a material way until 2025.

Palantir need to show more progress with generative AI commercial deployments. As we can see that 06 June, Palantir stock price make a move up, but that subsides soon in the following weeks, so this is a concern that Palantir need to address seriously.

Even though Palantir posted a profit in its Q1 earnings report , but its stock price fell because analyst focused on U.S. commercial market growth amid weakness in the software maker's international business.

The concern that Palantir might not have the ability to drive stronger acceleration in 2024 could be Palantir have not shown similar AI tailwinds for its government and international commercial businesses similar to the U.S. commercial.

So if we looked at these deals and partnership, I personally would not consider Palantir stock valuation a factor, as this company should be able to continue its growth.

Looking back at 2023, while Nasdaq composite climbed 43% while the S&P 500 rose 24%.Palantir outperform with a jump of 167%.

Palantir bulls are looking at artificial intelligence software as a growth driver. Palantir has already cemented the AI opportunity with government customers for intelligence gathering, counterterrorism and military purposes.

Now what we need to look out is how Palantir would be using the generative AI to spur growth in the commercial market. Not forgetting that Palantir has expanded into health care, energy and manufacturing.

As we have looked at how Palantir have been trading since its last Q1 results, there have been some news and events affecting the stock price. With the AI buzz still going strong, enterprise software engaging in AI should be next in focus.

If we look at how Palantir have been trading in recent weeks, there is actually a potential BUY opportunity presented on 24 June 2024 (this week Monday), where the KDJ make a nove up on the J value.

But there is something to be cautious would be the MACD is making a bearish crossover, so the question remain whether Palantir can hold above the $25 dollar level

While I am a Palantir bulls, but I prefer to use fundamental and technical to assess my conviction, there are signs that Palantir should be able to gain from the commercial side of its business.

Appreciate if you could share your thoughts in the comment section whether you think Palantir would have a good run on the back of demand for AI enterprise software picking up?

Disclaimer: The analysis and result presented does not recommend or suggest any investing in the said stock. This is purely for Analysis.