Key Highlights

● Palantir rose $10.27 to close at $209.05 on Friday, a record closing level according to market data.

● Barclays analyst Anthony Valentini initiated coverage with an Overweight rating and a $265 price target after Thursday's close.

● Goldman Sachs analyst Gabriela Borges reportedly upgraded Palantir to Buy from Neutral with a $230 target.

● Software rebounded on Friday while chipmakers such as Nvidia and AMD lagged, a day after an AI-linked selloff.

Palantir Technologies (NASDAQ:PLTR) surged on Friday, rising $10.27 to close at $209.05. Market data described it as a record closing level. The shares traded between $198.30 and $209.58 on Volume of about 37.6 million shares.

The headline catalyst was a new Wall Street call. Barclays (NYSE:BCS) analyst Anthony Valentini initiated coverage of Palantir with an Overweight rating and a $265 price target after Thursday's close, as part of a broader launch of coverage on defense and aerospace companies, according to market reports. An Overweight rating signals the analyst expects the stock to outperform the relevant benchmark over time.

One market report separately said that Goldman Sachs (NYSE:GS) analyst Gabriela Borges upgraded Palantir to Buy from Neutral, with a $230 price target. That claim appeared in only one report.

What Palantir does

Palantir builds data-analysis and AI software used by governments, militaries and large companies. Its platforms help organizations pull together vast amounts of information and turn it into decisions, from tracking Supply chains to supporting defense operations. Barclays placed it within its defense and aerospace coverage, reflecting the company's deep government business, while commercial customers have become an increasingly important part of its growth story. That blend of government and corporate work has made it one of the most closely watched names in the AI trade.

A good day for software

The new coverage landed on a day when software was rebounding strongly. On Thursday, a media report that OpenAI's annualized Revenue was about $50 billion at the end of September, well below a figure that had been circulating, knocked AI-linked stocks lower. On Friday, a separate media report said OpenAI expects to reach at least $70 billion by year end, and buyers returned. Oracle (NYSE:ORCL), Microsoft (NASDAQ:MSFT), Palo Alto Networks (NASDAQ:PANW) and CrowdStrike (NASDAQ:CRWD) all gained, while chipmakers such as Nvidia (NASDAQ:NVDA) and AMD (NASDAQ:AMD) lagged.

The same Barclays coverage launch reached beyond Palantir. The firm initiated SpaceX (NASDAQ:SPCX) at Overweight with a $254 target, Rocket Lab (NASDAQ:RKLB) at Overweight with an $85 target and Lockheed Martin (NYSE:LMT) at Equal Weight with a $554 target. In electric air taxis, it downgraded Joby Aviation (NYSE:JOBY) to Underweight and moved Archer Aviation (NYSE:ACHR) to Overweight.

Market backdrop

The S&P 500 rose 46.18 points to 7,811.54, closing about seven points below Tuesday's record. The Dow added 423.31 points to 51,654.95 and the Nasdaq Composite gained 172.83 points to 27,366.17. The CBOE Volatility index eased to 14.84.

Interest rates remain a headwind for richly valued growth stocks. The 10-year Treasury Yield sits near a 24-year high and the Federal Reserve raised rates in September for the first time since 2023. Fed Governor Christopher Waller said on Thursday he anticipates additional hikes to bring Inflation back to the Fed's goal. Geopolitics also hovered over the session. Nick Twidale, chief market strategist at ATFX Global, said "The big question for markets is whether Trump sticks to his word if Iranian attacks intensify."

Analyst Reaction and Iran Headlines Set the Backdrop for Palantir Next Week

Monday is Columbus Day, with stocks open and the Bond Market closed. The economic calendar includes September consumer prices on Wednesday, October 14, and producer prices and retail sales on Thursday. Big banks report from October 13 to 16, and the Fed's next meeting is on October 27 and 28. Palantir investors will follow how other analysts respond to the fresh coverage and whether the software rebound extends into next week. Defense names may also react to developments around Iran.