Palantir Stock Pops on USDA Deal. Should You Buy PLTR Stock Here?

Palantir (PLTR) shares are up on April 22 after the company secured a significant $300 million software procurement agreement with the U.S. Department of Agriculture (USDA). The announced transaction aims to modernize service delivery for farmers and improve food supply security.

Following today’s rally, PLTR looks headed to challenge its 100-day moving average (MA), with a decisive break above $158 expected to boost upward momentum in the near term.

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That said, Palantir stock has been a laggard in 2026, currently trailing its year-to-date high by 15%.

The USDA partnership is bullish for PLTR shares as it deepens the company’s sticky relationship with the federal government beyond traditional defense and intelligence.

By providing operational software to streamline program delivery and protect farmland data, the Nasdaq-listed firm is proving its Artificial Intelligence Platform (AIP) is essential for civil infrastructure.

For investors, the announcement simply represents a validation of Palantir’s ability to scale high-margin government contracts.

Plus, it could serve as a case study for other federal agencies, potentially sparking a domino effect of similar multi-year, high-value domestic contracts that boost long-term revenue growth.

Beyond the headline noise, however, Palantir shares remain just as unattractive given their stretched valuation.

At a forward price-to-earnings (P/E) multiple of about 139x, the artificial intelligence stock looks priced for perfection in an environment clouded with geopolitical and macroeconomic uncertainty.

Meanwhile, competition from rivals like Anthropic is intensifying in the enterprise AI space, which may, over time, erode PLTR’s commercial moat.

Moreover, persistent insider selling, including director Alexander D. Moore’s recent sale of about 16,000 shares, suggests those closest to the business also believe the stock may be overextended currently.

Despite valuation and competition risks, Wall Street analysts remain bullish as ever on PLTR stock for the next 12 months.