Palantir Technologies (PLTR) stock gained 3% on Wednesday as Rosenblatt Securities reiterated its Buy rating and $225 price target, citing the Federal Aviation Administration’s rollout of an artificial intelligence-powered system using the company’s technology.
The FAA launched its SMART (Strategic Management of Airspace, Routes, and Trajectories) system on Monday to manage flights at three major Washington-area airports.
The deployment marks the first live US use of the technology.
Rosenblatt said the rollout highlights an opportunity for Palantir in government AI and provides a further example of how its technology is being deployed in operational settings.
Rosenblatt highlights FAA opportunity
Rosenblatt said it was bullish on the FAA’s use of Palantir’s aircraft safety monitoring solution. In its note, Rosenblatt said the rollout of the SMART system “highlights the FAA opportunity for Palantir.”
The firm also described the deployment as a validation of Palantir’s government AI capabilities.
The FAA system is powered by artificial intelligence and is being used to manage flights across three major Washington-area airports.
The development comes as Palantir continues to expand the use of its technology across government and enterprise applications.
Foundry platform expands into food safety
Investor attention also focused on a separate Palantir deployment involving Chipotle Mexican Grill.
Chipotle is piloting a Food Safety Risk Management Platform built on Palantir’s Foundry software.
The platform brings together restaurant-level information, including health department inspection scores, pest incidents and employee illness reports, to assign a food safety risk score to individual locations.
The pilot highlights the use of Palantir’s Foundry software in a consumer-facing application and adds to the range of industries using the company’s platforms.
Together with the FAA deployment, the Chipotle pilot illustrates how Palantir’s Foundry and Artificial Intelligence Platform (AIP) are being applied across government and enterprise clients.
Burry adds to bearish Palantir position
While Rosenblatt maintained a bullish view, investor Michael Burry has taken a different position on Palantir.
Burry said in a September 22 Substack post that he had added to his short positions in Palantir, Micron Technology, Nebius Group and the iShares Semiconductor ETF.
He said the latest additions were made “in some size” as he questioned the durability of the current semiconductor and AI boom.
Burry also added positions in QXO, Build-A-Bear Workshop, Sprouts Farmers Market, Birkenstock Holding and MercadoLibre, saying the five stocks had “corrected tremendously” and that he considered their prices “rather attractive.”
His Palantir short comes as he also questioned expectations surrounding the semiconductor market. Burry highlighted comments from Acer CEO Jason Chen regarding memory supply.
Quoting Chen, Burry wrote, “No way! How could there be a continuous shortage?” Chen said some components, including LPDDR5 and DDR5 9600, remained in shortage, while DDR4 faced oversupply.
Burry said Chen’s comments “align” with his own view of the market.
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