Palantir’s Rally Gains Steam on Latin America Win and Nvidia Alliance, but European Risks Loom
Published on 07/07/2026 at 21:14 | Redaktion boerse-global.de
Palantir has strung together seven consecutive sessions of gains — its longest winning streak since last April — as fresh business in Latin America and a deepening Nvidia partnership drown out mounting political headwinds in Europe. The stock added 4.77% on Tuesday alone to reach EUR 121.32, lifting the weekly advance to 18.75%.
The Mexican insurer GNP Seguros, a unit of Grupo BAL and the country’s market leader, has signed on to use Palantir’s Foundry and AIP platforms across health, life, auto and property lines. The deal marks Palantir’s first publicly confirmed enterprise customer in Latin America. GNP Seguros plans to deploy the software for fraud detection, risk monitoring and underwriting improvements across its entire portfolio.
The customer win comes as CEO Alex Karp sharpens his rhetoric against rival AI vendors. In a recent interview, he described the token-based business models of OpenAI and Anthropic as a “wealth tax” on corporate data. Karp argued that large enterprises are growing frustrated with models that effectively skim value from their proprietary information. Palantir’s counter-offer, built on its AIP platform and the Nvidia collaboration, allows companies to build their own AI models without surrendering data control. Analysts increasingly cite full data sovereignty as a competitive differentiator for the software maker.
Financial results continue to bolster the bull case. In the first quarter of 2026, Palantir posted revenue of $1.63 billion, up 85% year over year. The US commercial segment alone surged 133% to $595 million. The company now expects full?year 2026 revenue in the range of $7.65–$7.66 billion, with adjusted free cash flow of $4.2–$4.4 billion. Its “Rule of 40” score — revenue growth plus free cash flow margin — reached an extraordinary 145%, a figure analysts describe as exceptionally rare for a software company of this scale.
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That momentum, however, is playing out against a backdrop of growing European resistance. In France, the domestic intelligence agency DGSI replaced Palantir with the French firm ChapsVision just six months after renewing its three?year contract. Prime Minister Sébastien Lecornu made the announcement on June 16, citing the need for “real autonomy” and a desire to avoid “new strategic dependencies” in digital infrastructure. The reversal — a fresh renewal followed by a full replacement within months — underscores how brittle Palantir’s European government relationships remain.
Britain presents an even larger exposure. The NHS Federated Data Platform contract, valued at £330 million, runs until March 2027 but requires an active ministerial decision to trigger the first renewal option. Health Secretary Dr. Zubir Ahmed has said the government will decide “later this year.” Media reports indicate ministers are weighing an exit clause if alternative suppliers can deliver comparable results. Parliament’s Science, Innovation and Technology Committee has already called for Palantir’s involvement to end. Separately, in Switzerland, the Zurich Commercial Court dismissed the majority of Palantir’s counter?statements against the magazine Republik, a case that regulators are watching as a bellwether for how European authorities view the company’s data practices.
Despite the political friction, Palantir’s stock has technically recovered its 50-day moving average of EUR 115.20, now trading 5.31% above that level. The 14-day relative strength index reads 60.9, suggesting strong momentum without overheating. Yet the shares still sit 9.61% below their 200-day moving average of EUR 134.22 — a level that has prompted sell-offs in the past. The stock remains 32.59% off its 52-week high of EUR 179.98 from November 2025 but has climbed roughly 30% from its June low of EUR 93.30.
Valuation remains the biggest point of contention. Even after the rally, the price-to-earnings multiple hovers near 300, implying that investors are pricing in years of hypergrowth. A market capitalization of roughly EUR 272 billion leaves little room for disappointment. D.A. Davidson analyst Gil Luria recently upgraded the stock from neutral to buy on the argument that Palantir has “grown into its valuation,” but other analysts remain cautious about the consensus price target of EUR 160.45.
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The Nvidia partnership offers a further growth vector. The two companies are working to run Nvidia’s AI models in highly secure environments, combining them with Palantir’s AIP, Ontology, Foundry and Apollo platforms. Analysts view this as evidence that Palantir is becoming the security layer that allows sensitive organisations to deploy AI at all — positioning the company as an enabler rather than a competitor in the AI stack.
For now, the bullish camp points to the Rule?of?40 score, the Latin American expansion and the Nvidia alliance as evidence that Palantir’s growth story remains intact. The bearish case rests on whether Europe’s political pushback becomes a structural brake on that trajectory. The most concrete test comes later this year, when Britain decides on the NHS contract renewal. Until then, the market will be watching whether other European governments follow France’s lead in walking away from deals that were only recently renewed.
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