New York, March 4, 2026, 10:22 (ET) — Regular session underway.
Shares of Palantir Technologies Inc jumped roughly 3% Wednesday, with traders circling back to defense-focused software plays as U.S.-Iran tensions keep attention on military technology. Palantir was trading at $151.58, up $4.36, shortly after 10 a.m. ET; it ended Tuesday at $147.22.
Rosenblatt Securities bumped its Palantir target to $200, up from $150, sticking with its Buy rating. The firm cites growing wartime demand for defense systems, arguing Palantir’s integrated software may prove more valuable than standalone “large language models” for text generation. Investing.com
The debate just got a lot more real. President Donald Trump has moved to ban Anthropic’s Claude tools at the federal level, giving agencies a six-month window to phase them out, Reuters reported. Defense Secretary Pete Hegseth also warned military contractors against doing any commercial business with Anthropic. Lockheed Martin said it will comply, calling the expected impact “minimal.” Legal experts said contractors are likely to fall in line, even if the ban gets challenged in court. Reuters
Palantir’s Maven Smart System is parsing classified intel and identifying key targets in Iran, according to sources cited by The Washington Post, with Claude running inside the system. “It is notable that AI has gone from theoretical to operational support,” said Paul Scharre, executive vice president at the Center for a New American Security. Still, he cautioned, “AI gets it wrong.” The Washington Post
Insider action is in the spotlight as well. Co-founder Peter Thiel filed a Form 144 on March 2, signaling plans to unload as many as 2 million Class A shares with a total market value near $280 million.
Additional momentum is coming from Washington’s broader defense spending drive. According to Reuters, a meeting between the White House and leading defense contractors is on the calendar for Friday, with officials possibly submitting a supplemental defense budget request to Congress that same day.
Palantir has staked its business on serving government agencies and military clients, securing major defense contracts in the U.S. A notable move came last year, when the U.S. Army announced it had rolled dozens of contracts into a single enterprise deal. That agreement offers volume discounts and lets the Army buy as much as $10 billion in services over a decade. Even so, the Army emphasized that the deal doesn’t guarantee any new spending.
This trade isn’t bulletproof. An abrupt Middle East de-escalation, legal wrangling over the Anthropic ban, or delays in procurement might yank momentum from the “defense AI” rally in a hurry. And this week, Palantir landed in court—facing a lawsuit from a San Antonio defense contractor alleging fraud and contract breach tied to a partnership, according to the San Antonio Express-News. San Antonio Express-News
Investors want details on when the Pentagon will swap out Claude in current systems. They’re also eyeing fresh instructions for contractors, plus any signs from Friday’s White House meeting that might clarify future defense tech spending.
