Palantir (PLTR) shares closed higher again on Tuesday after the data mining company announced a “multi-year expansion” of its partnership with the Tokyo-based SOMPO Holdings. 

It’s the second time that PLTR has decided in favor of extending its agreement with the Japanese insurance holding firm following an initial $50 million expansion in 2023. 

Palantir stock has been on an absolute tear since the start of 2025. At the time of writing, it’s trading nearly 190% above its year-to-date low of roughly $65 in mid-January. 

What a SOMPO Expansion Really Means for Palantir Stock

Palantir’s multi-year expansion with SOMPO Holdings signals deepening commercial traction in Asia. 

For investors, it’s a significant development since enterprise adoption of artificial intelligence (AI) and data platforms is accelerating in the world’s largest continent. 

Additionally, renewing and growing an existing partnership, especially after a previous $50 million expansion, demonstrates customer satisfaction and long-term value. 

More importantly, the announcement reflects Palantir’s ability to monetize its Foundry platform beyond government contracts, which investors view as a key to long-term sustainable growth. 

It boosts recurring revenue visibility and validates the company’s global strategy, helping support bullish sentiment around PLTR shares. 

Why PLTR Shares Look Unattractive at Current Levels

While Palantir shares have delivered outsized returns this year, Stephen Bersey, an HSBC analyst, believes there’s hardly any further upside left in this AI stock for 2025.  

Bersey maintained his “Hold” rating on the data analytics firm last week and raised his price target to $181, roughly in line with the price at which PLTR stock is trading at the time of writing. 

His cautious stance on Palantir Technologies is based primarily on valuation concerns. 

Moreover, there have been 19 sales and “zero” insider buys over the past three months as tracked by Barchart, which may be another red flag for those considering building a position in Palantir stock at current levels. 

Palantir Is a ‘Hold’-Rated Stock Among Wall Street Analysts

Note that HSBC isn’t the only Wall Street firm keeping cautious on Palantir stock at north of $180. 

In fact, the consensus rating on PLTR shares currently sits at “Hold” only with the mean target of about $156 indicating potential downside of well over 15% from here.