Defense stocks often fly under the radar, but when innovation and military demand collide, the potential upside can be massive. From shipbuilders to software providers, companies serving the U.S. Department of Defense are increasingly tapping into AI-driven tools to accelerate performance and gain long-term contracts.
One such company is Palantir Technologies (PLTR), which has gained significant traction in a short time thanks to its deepening ties with the U.S. military.
The company just took a major leap forward with the launch of Warp Speed for Warships, a new initiative in collaboration with the U.S. Navy and the BlueForge Alliance. Designed to digitally transform America’s maritime supply chain and shipbuilding ecosystem, the program aims to accelerate warship production and bolster national defense readiness using Palantir’s AI‑powered platforms.
With PLTR stock already sitting near all-time highs and institutional buying surging, the launch of Warp Speed could mark a pivotal moment. Here’s what investors need to know about Palantir’s bold defense push.
Founded in 2003, Palantir Technologies is a tech company that develops software platforms for the intelligence community and commercial enterprises globally. The company offers several key products, including Palantir Gotham, Foundry, Apollo, and the Artificial Intelligence Platform (AIP). The company has a market cap of around $335 billion for now.
After delivering a strong performance in the previous year, Palantir’s shares have continued their upward trajectory in 2025. Despite a broader market selloff, the stock has managed to climb more than 94% year to date, making it the top-performing S&P 500 Index ($SPX) stock this year.
At the same time, Palantir’s stock currently trades at lofty multiples. PLTR’s forward price-earnings ratio stands at around 389 times earnings, reflecting very high growth expectations.
Palantir Technologies is expanding its defense business through a major new initiative called “Warp Speed for Warships,” launched in partnership with the U.S. Navy and BlueForge Alliance. The program aims to connect shipbuilders, suppliers, and defense partners via a real-time digital network to improve delivery speed, coordination, and supply chain efficiency. Funded by the Navy’s Maritime Industrial Base office, the initiative extends Palantir’s focus beyond submarines to include surface warships. BlueForge’s co-CEO said the effort provides U.S. industry with the digital tools needed to meet rising defense demands.
