President Donald Trump has publicly praised Palantir Technologies even as the company’s stock recorded a sharp decline this week amid ongoing geopolitical tensions and weakness in the broader software sector.
In a post on Truth Social, Trump described Palantir as having “great war fighting capabilities and equipment,” adding, “Just ask our enemies.” The comment came as the company’s shares were heading toward a weekly drop of around 14% to 15%.
Palantir is widely known for its artificial intelligence-powered data analytics platforms, which are used by governments and defence agencies, including the US military. Its Maven Smart System is reportedly being used to support target identification in military operations in the Middle East linked to strikes on Iran that began earlier this year.
A significant portion of Palantir’s revenue comes from US government contracts, including the Pentagon and immigration enforcement agencies.
The company’s chief executive, Alex Karp, has consistently defended Palantir’s role in defence and intelligence work, stating that its technology is designed to support national security operations. Over the years, Karp has also shown increasing alignment with US defence priorities, despite previously criticising Donald Trump.
Palantir has also faced internal and external criticism over its involvement in surveillance-related technologies and its ties to military applications of artificial intelligence. Some employees have previously left the company over its political and defence-related direction.
The stock decline this week also comes amid broader pressure on the software and artificial intelligence sector following new developments in competing AI models and growing concerns about the impact of AI on traditional software businesses.
Investor sentiment has also been influenced by comments from short-sellers, including investor Michael Burry, who has publicly questioned Palantir’s valuation and expressed bearish positions on the stock.
Following Trump’s remarks, analysts noted short-term volatility in sentiment, although broader concerns around valuation and sector competition continue to weigh on the stock.
At the time of reporting, Palantir shares were trading around $128 after a volatile week in the market.
