The Biggest Winner of Trump’s First 100 Days Was Not Tesla... Palantir Soared 58% [Company & Issue]

Soared 58% in Trump’s First 100 Days
Musk Benefits from US Government Restructuring
Domestic AI Platforms Less Affected by Tariff War

EPA Yonhap News

During the first 100 days of Donald Trump's presidency, Palantir was recorded as the US stock with the highest return, despite the impact of the tariff war. Palantir's returns far outpaced those of Tesla, led by CEO Elon Musk, who was appointed as head of the Department of Government Efficiency (DOGE) and is considered one of President Trump's closest allies. As the US government undertook large-scale public sector restructuring, demand for generative artificial intelligence (AI) platforms surged, and military AI demand increased in Europe following the war in Ukraine. This has fueled expectations that Palantir's revenue will continue to grow, regardless of the ongoing tariff war.

Soared 58% Alone in Trump’s First 100 Days... Outperformed Tesla

According to CNBC, Palantir achieved the highest return among US stocks from January 20, the day President Donald Trump was inaugurated, to April 29, his 100th day in office. During this period, Palantir's stock price jumped 58.8%, from $73.07 to $116.08. While most US stocks suffered sharp declines due to the effects of President Trump’s tariff war, Palantir alone maintained strong performance.

Tesla, which drew attention as CEO Elon Musk was appointed both as one of President Trump’s closest aides and as head of DOGE, fell by 31% during the same period. Nvidia also dropped 19.39%, and the so-called ‘Magnificent 7 (M7)’ tech giants?Apple (-9%), Microsoft (-8.67%), Alphabet A (-17.37%), Amazon (-16.35%), and Meta (-10.69%)?all posted poor performances.

As President Trump announced reciprocal tariffs not only on China but also on major allies in Europe and Asia, protectionism was significantly strengthened and major US export companies suffered heavy losses. In contrast, Palantir was able to maintain its strength because its main source of revenue?AI platform services?was relatively less affected by tariffs.

Musk Benefits from US Government Restructuring... AI Platform Demand Rises

Elon Musk, CEO of Tesla and head of the US Department of Government Efficiency (DOGE). Photo by Reuters Yonhap News

Ironically, Elon Musk, as CEO, is known to have played a significant role in Palantir’s stock surge. After Musk became head of the Department of Government Efficiency, large-scale restructuring across US government agencies led to even greater demand for AI platforms.

According to the Wall Street Journal (WSJ), the Department of Government Efficiency began developing the ‘Mega API’ program for integrated taxpayer data management at the US Internal Revenue Service (IRS) earlier last month, and is reportedly collaborating with Palantir. Palantir, which specializes in big data integration, is expected to play a key role in this project.

Palantir was founded in 2003 with support from In-Q-Tel, a startup fund established by the US Central Intelligence Agency (CIA) after the September 11, 2001 attacks to build terrorist surveillance systems. Since then, Palantir has grown by securing contracts for US government security programs and AI platforms. More than 40% of its total revenue still comes from US government contracts.

Palantir’s clients now include major US government agencies such as the Department of Defense, Federal Bureau of Investigation (FBI), and CIA, as well as key foreign government agencies like the UK’s National Health Service (NHS). Because its main revenue structure is a subscription-based ‘Software as a Service (SaaS)’ model that provides software to clients via cloud services, Palantir is considered less vulnerable to the tariff war than companies exporting finished goods.

Military AI Platforms as Core Products... War-Driven Demand Continues

In February, UK Prime Minister Keir Starmer (right), who visited the United States, is seen visiting Palantir headquarters to observe military generative artificial intelligence (AI). Photo by AFP

Palantir’s military AI platforms, which gained significant attention after the Ukraine war and Middle East conflicts, have also driven its stock price higher. On April 14, Palantir announced it had won a contract to build AI tactical systems for the North Atlantic Treaty Organization (NATO). NATO is currently deploying Palantir’s ‘Maven’ smart system, a military operations AI platform co-developed with the US Department of Defense, at Allied Command Operations (ACO).

Palantir’s AI tactical platform became well-known in the defense industry after it was used in the US military’s ‘Neptune Spear’ operation in 2011, which resulted in the killing of Al-Qaeda leader Osama bin Laden. Palantir’s core program ‘Gotham’ enabled the operation’s success by analyzing big data to locate bin Laden’s hideout.

Currently, Palantir’s AI platforms are being widely used not only in the Ukraine war but also in the Israel-Hamas conflict. The platforms aggregate and analyze real-time data from drones, satellites, and other sources on the battlefield, supporting target management and strike missions. As postwar demand for AI-driven security is expected to grow, Palantir’s revenue is also projected to increase significantly.