Palantir’s Stock Surges as Wall Street Analyst Says It Could Help DOGE Cut Spending

Palantir (PLTR) shares surged Wednesday as William Blair analysts suggested the company could be well positioned to support efforts to trim government spending directed by the Trump administration’s Department of Government Efficiency.

The analysts told clients Wednesday that a recent executive order requiring federal agencies to create a centralized payment tracking system practically “seems earmarked for Palantir.” They added that they expect Palantir’s artificial intelligence offerings to be “platforms of choice.”

Shares of Palantir jumped nearly 7% to $90.13 Wednesday, leaving the stock up 19% for the year so far. They’ve more than tripled in value over the past 12 months, despite a recent selloff on worries that an expected pullback in spending could hurt the government contractor.

William Blair analysts upgraded the stock to “market perform” from “underperform,” and said it could return to $125 over the next two years “as the market reverts to risk-on mode.”

Just earlier this week, Wedbush analysts called Palantir one of their “top names to own in 2025″ and reiterated an $120 price target. The company could be in a “sweet spot to benefit from a tidal wave of federal spending on AI,” the analysts said, even as other government contractors face spending cuts. “We believe Palantir could actually gain more deals and IT budget dollars across various government agencies,” Wedbush added.