Palantir Technologies Inc (NYSE:PLTR) shares are in the spotlight Thursday as the stock marches toward 52-week highs. Here's a look at what's driving the action this week.

What To Know: Palantir shares fell to start the week as broader markets sold off, but the AI data stock immediately bounced and traded higher into earnings after the close on Monday. The momentum in Palantir shares picked up after the company reported better-than-expected financial results for the second quarter and raised guidance.

Total revenue was up 27% year-over-year, driven by a 55% year-over-year increase in U.S. commercial revenue. Palantir's customer count grew 41% year-over-year and 7% on a quarter-over-quarter basis.

"The growth of our business has been re-accelerating steadily, and we see an unprecedented opportunity ahead to capture and build on that momentum," Palantir CEO Alex Karp said on Monday.

On Tuesday, several analysts lifted price targets on Palantir stock following the company's quarterly results, which helped push shares even higher. Palantir then announced deals with Wendy's and Microsoft Corp (NASDAQ:MSFT).

On Wednesday, Palantir announced a partnership with Wendy's Quality Supply Chain Co-op (QSCC) to accelerate digital transformation, AI adoption and operational decision making.

QSCC will initially move onto Palantir's Artificial Intelligence Platform (AIP) to improve the scale and speed of decision-making. The company will then begin using AIP for supply chain management and waste prevention.

Palantir also announced an advancement of its partnership with Microsoft Thursday morning, which is behind the surge in shares on Thursday.

The new deal will allow the two companies to bring some of the most sophisticated and secure cloud, AI and analytics capabilities to the U.S. Defense and Intelligence Community.

Palantir and Microsoft will offer an integrated suite of technology, allowing national security agencies to operationalize Microsoft's Large Language Models (LLMs) via Azure OpenAI Service within Palantir's AIP in Microsoft's government and classified cloud environments.

"Bringing Palantir and Microsoft capabilities to our national security apparatus is a step change in how we can support the defense and intelligence communities," said Shyam Sankar, chief technology officer of Palantir.

"Palantir AIP has pioneered the approach to operationalizing AI value – beyond chat — across the enterprise. It's our mission to deliver this software advantage and we're thrilled to be the first industry partner to deploy Microsoft Azure OpenAI Service in classified environments."

PLTR Price Action: Palantir has a 52-week high of $29.83 and a 52-week low of $13.68. Palantir shares