Palantir Technologies (PLTR), a company specializing in artificial intelligence and defense technology, is on track for its fourth consecutive day of decline this week. As of 10 a.m. ET on Friday, the stock had fallen 4.6%, bringing its total decline for the year to over 30%.
Market analysis suggests that the recent weakness in the software sector is partly due to intensified competition in the AI field, particularly the rapid rise of Anthropic. On April 7, Anthropic released its general-purpose language model, Claude Mythos, which can run multiple AI “agents” simultaneously and is growing at an alarming rate, causing concern among software investors. Data shows that Anthropic’s annual recurring revenue surged to $30 billion in the first four months of this year, compared to an earlier forecast of just $9 billion for the end of 2025. In contrast, although Palantir recently reported 137% growth in commercial revenue and 66% growth in government revenue for its latest quarter, these figures appear lackluster next to Anthropic’s growth. The market fears that if Anthropic maintains its current momentum, it could eat into Palantir’s market share. Moreover, with a price-to-earnings ratio of 235, Palantir’s stock remains highly valued.
However, Wedbush analyst Dan Ives disagrees with this view. He argues that the claim that Anthropic is eating into Palantir’s market share is wrong and purely fictional. The growing demand for Anthropic’s AI services will not harm Palantir; instead, it will accelerate Palantir’s own growth. Wedbush maintains an “Outperform” rating on Palantir and sets a price target of $230.
Looking at Palantir’s own performance, its revenue grew by 24%, 17%, 26%, and 56% from 2022 to 2025, respectively, with total revenue soaring 70% in the most recent quarter, indicating continued strong growth momentum. Analysis points out that Palantir’s competitive advantage lies in its data-centric “moat,” particularly the deep integration capabilities of its AIP platform in enterprise applications. This has not been replaced by Anthropic’s model capabilities but has instead been strengthened during the process of AI application deployment.
Boosted by news such as U.S. President Trump’s affirmation of Palantir on social media, the stock’s losses have narrowed.
