Government contracts offer revenue potential to key contractors, with defense spending alone projected to reach $1 trillion by 2031. Read how Palantir fits into this contract mix.

Palantir Technologies stock (NASDAQ: PLTR) has had a solid run, rising by about 37% over the past month, and remains up by about 4x since the beginning of the year,

Two main catalysts are driving Palantir's stock higher. First, it expects its revenue to rise 26% in 2024. It attributes that reacceleration to the robust growth of its U.S. commercial business, new government contracts, and the rollout of new generative artificial intelligence ( AI) services for streamlining its data mining services.

Palantir stock has been on a roll but it's a bad idea to chase the software behemoth's shares now, a Baird analyst said.

We are bullish on Palantir stock due to strong fundamentals, rapid revenue growth from AI-driven demand, and government contracts. See more here.