Data analytics company Palantir (PLTR) is planning to participate in a new funding round for privately held drone maker Shield AI.
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Shield AI is raising hundreds of millions of dollars from investors including Palantir and defense contractor Lockheed Martin Corp. (LMT) in a funding round that values the San Diego-based autonomous drone maker and software firm at $5 billion.
Shield AI’s customers include the Ukrainian and U.S. governments. The company was last valued at about $2.5 billion in a 2023 funding round. The deal creates a deeper alliance between Shield AI and Palantir, which sells data analytics software to U.S. defense agencies and other governments around the world.
Other Investors
Shield AI was founded in 2015 by brothers Ryan and Brandon Tseng. The company has offices in Dallas, Texas and Washington, D.C., according to its website. Other investors in Shield AI include Riot Ventures and Cathie Wood’s ARK Invest (ARKK).
The new funding round for Shield AI comes as U.S. President Donald Trump returns to power. Expectations are that the Trump administration will ramp-up U.S. defense spending, which could lead to lucrative new contracts for companies such as Shield AI and Palantir.
PLTR stock has gained 315% in the last 12 months.
Is PLTR Stock a Buy?
The stock of Palantir has a consensus Moderate Sell rating among 19 Wall Street analysts. That rating is based on two buy, 10 Hold, and seven Sell recommendations issued in the last three months. The average PLTR price target of $48.27 implies 33.94% downside risk from current levels.
