• Palantir is up 45% this year, bucking the broader downward trend in the technology sector.
• The company's government business and focus on efficiency are responsible for the stock's outperformance.
• Palantir has set itself apart in the software world for its AI-enabled tools, gaining recognition for its defense and software contracts with key U.S. government agencies.

have struggled in 2025, as recession and fears sap investor appetite for riskier assets.

is the exception.

Against a volatile market backdrop, the software maker's stock has gained 45% and is the best performer among companies valued at $5 billion or more, according to FactSet. The closest tech names are , up 33%, , up 30%, , up 29%, and , up 29%.

President Donald Trump's frenzy of government is partially to thank for the pop.

"When you think about macroeconomic concerns, you as a company need to be more efficient, and this is where thrives," said Bank of America analyst Mariana Pérez Mora.

Palantir has set itself apart in the software world for its artificial-intelligence-enabled tools, gaining recognition for its defense and software contracts with key U.S. government agencies, including the military. In the fourth quarter, its year-over-year to $343 million.

Companies have faced immense volatility in 2025 as tariffs threaten to jeopardize global and halt day-to-day manufacturing operations by hiking costs. Those fears have brought the broad market index down about 7% this year, while the tech-heavy Nasdaq Composite has slumped 11%.

Tech's megacap companies — , , , , , and — are all down between 7% and 31% so far this year.

At the same time, the Trump administration has clamped down on government spending, giving Tesla CEO 's freedom to slash public sector costs. Some administration officials have touted shifting dollars from consulting contracts to commercial software providers like Palantir, said William Blair analyst Louie DiPalma.

"Palantir's business model is highly aligned with the priorities of the Trump administration in terms of increasing agility and being very quick to market," he said.

That's put Palantir in the league with major contractors such as and , which have outperformed in this year's downdraft. Many companies in the space are also looking to partner with the firm and tend to flock to defense during recessionary times, DiPalma said.

has also been a vocal supporter of American innovation and the company's central role in helping prop up what he called the "single best tech scene in the world" earlier this year. Karp also told C온라인카지노사이트 that the U.S. needs an "all-country effort" to compete against emerging adversaries.

But the ride for Palantir has been far from smooth, and shares have been susceptible to volatile swings. Shares sold off nearly 14% during the week that Trump first announced . Shares rocketed 22% one day in February on strong earnings.

Its inclusion in more passive and quant funds over the years and the growing attention of retail traders has added to that turbulence, DiPalma said. Last year, the company joined both the S&P and Nasdaq. Palantir trades at one of the highest price-to-earnings multiples in software and last traded at 185 times earnings over the next twelve months. That puts a steep bar on the stock.

"There really is no margin for error," he said.

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