3 Reasons Palantir Stock Price Is up a Market-Beating 73% in 2025 YTD

Palantir stock is crushing the broader market this year and it’s not even close. In fact, it’s the second-best-performing stock in the entire S&P 500.

What makes Palantir stand out is the unique blend of forces driving the gains. The company’s investing profile spans several of the market’s main themes: government spending, AI, and the rising influence of retail investors.

Shares of the AI-powered software company are up 73% year-to-date, handily trouncing the S&P 500‘s 5% return. The stock is also well outpacing other tech titans like Nvidia (+17% YTD), Microsoft (+18%), and Apple (-20%).

Detailed below are the three primary driving forces behind the stocks’s stellar 2025 performance:

1. Government dealmaking

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