What happened
Shares of Palantir Technologies (PLTR 0.56%) charged sharply higher Wednesday, defying the broader market downturn and spiking as much as 11%. As of 11:30 a.m. ET, the stock was still up 3.2%.
The catalyst that sent the artificial intelligence (AI) and data mining specialist higher was the company's latest deal, which marks the third such announcement this week.
So what
Palantir announced a new multi-year partnership to bring "smart factory" technology to Panasonic's (PCRFY -3.03%) manufacturing facility in Nevada. Panasonic Energy North America will deploy Palantir's Foundry technology to upgrade its factory, installing edge sensors on its assembly lines, and integrating more efficient automation strategies -- which will increase line uptime and decrease defects and waste. The company will also deploy this technology at its new plant in Kansas in 2025.
Panasonic noted it was seeking solutions to a number of challenges, including "disparate data systems and manual work-arounds leading to inaccurate data analysis," according to CIO Justin Herman. He admitted that within months they were able to gather actionable data and "reduce waste throughout the manufacturing process."
Now what
This marks the third notable announcement by Palantir this week. On Monday, the company said it signed a new, multi-year contract with the U.S. Special Operations Command, worth as much as $463 million. In a press release, Palantir noted that the "partnership is an example of converting software innovation into real battlefield advantage," according to President Akash Jain.
On Tuesday, Palantir said it was launching Foundry for Manufacturing on Amazon Web Services. This will give potential and current users of Palantir's data mining and AI applications easy access to a full line of tools, including "yield optimization, dynamic maintenance, production scheduling, and computer vision quality detection."
The slew of deals seems to confirm comments made by Palantir CEO Alex Karp last month. "The depth of engagement with and demand for our new Artificial Intelligence Platform (AIP) is without precedent," he said. Karp went on to say that the company's recent profitability is expected to continue in each and every quarter this year.
As excitement over AI has surged, Palantir's stock -- and its valuation -- have doubled so far this year. While the opportunity is massive, the stock will continue to be volatile.
