Palantir’s Deal With Archer Aviation Keeps AI’s Future in Focus

Key Points

• Palantir Technologies scored another win in March; this time, the company is partnering with Archer Aviation.
• The company has also started delivering its first TITAN mobile battle stations as part of the contract it won in March 2024.
• Selling pressure continues to weigh on PLTR stock, which is down another 2% as of the market close on March 13.

On March 13, Palantir Technologies Inc. NASDAQ: PLTR announced a partnership with Archer Aviation Inc. NYSE: ACHR to build the artificial intelligence (AI) foundation for Archer’s electric vertical take-off and landing (eVTOL) aircraft. Palantir will leverage its Foundry and AIP platforms to accelerate the scaling of Archer’s manufacturing facilities in Georgia and Silicon Valley.

The shared goal is to advance the development of next-generation software solutions using AI to drive innovation across every part of Archer’s aviation systems, including air traffic control, movement control, and route planning.

The partnership comes at a time when the technological foundation of the aviation industry is being questioned. In announcing the partnership, Archer's chief executive officer (CEO), Adam Goldstein, remarked that the legacy technology in commercial aviation has limited technological improvements. By partnering with Palantir, Archer expects to capitalize on the breakthroughs that exist in other sectors due to the rapid acceleration of AI.

The Latest in a Series of Wins for Palantir

It's only halfway through the month, but it’s already been a big month for Palantir. Between March 4 and March 6, the company announced three key contracts, and this week, it announced another win.

Palantir has started to deliver its Tactical Intelligence Targeting Access Node (TITAN) mobile battle stations to the U.S. Army. This is part of the $178 million contract Palantir received in March 2024. The deal marked the first time that a software company was designated as a primary contractor for a significant hardware program.

In announcing the delivery on its website, Palantir defined its key contributions as being:

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• Reducing sensor-to-shooter timelines
• Integrating with Army and Joint Fires systems
• Reducing soldier workflow burdens and cognitive load
• Providing deeper sensing that can interoperate with modern sensors
• Enabling AI/ML for accurate and effective targeting
• Enabling collection and processing while the vehicle is on the move

Palantir bulls will quickly note that the TITAN program could expand if the U.S. Army authorizes full-rate production after 2026. If that happens, the Army estimates it would need between 94 and 150 units. At the high end of those estimates, Palantir would generate approximately $1.5 billion in additional revenue. But the recent price action with PTLR stock suggests that investors believe plenty of future revenue and earnings are priced into the stock.

Bright Future Clouded by Rough Technical Picture

Long-term Palantir shareholders should cheer the partnership with Archer. First, it’s another win for the commercial side of the business, and second, it offers further proof that the long-term growth story remains in place.

However, long-term investors are facing a rough chart in the short term. Late on Thursday's trading day, PLTR stock was down about 2% for the week. That continues a downtrend that’s been in place since February 18. PLTR closed that session at $124.62, ending a rally that had started on January 13.

For now, the technical outlook for PLTR stock continues to suggest a range-bound stock at best. And there are reasons to believe it could move lower. On March 10, the bulls held off a fall below a critical level of support at around $75, but the stock is finding it hard to push above $80 in any meaningful way. That corresponds to the 100-day simple moving average (SMA).

The news about the company’s partnership with Archer isn’t likely to change that. In the midst of this current downtrend, Palantir has continued to stack wins. PLTR stock continues to face headwinds associated with a high valuation, and those winds are particularly strong, with a sour sentiment for technology stocks, as highlighted by the NASDAQ index, which is down 10% in 2025.

However, for long-term investors, the key takeaway is Palantir’s growing customer base, which strengthens its revenue and earnings floor. This foundation will eventually stabilize PLTR stock, but for now, holding steady until a clear trend reversal emerges is the prudent approach.