Palantir shares surged 7.7% on Friday as the data analysis and artificial intelligence software firm continues to acquire government contracts to accompany its expanding commercial activity.

Last week, Palantir was awarded a $795M U.S. Army modification to contract for Maven Smart System software licenses. Also, last week, U.S. President Donald Trump said he envisioned the U.S. building a $175B project to deploy a global missile defense system, dubbed the Golden Dome. Although some analysts surmise such a project presents extreme challenges, Palantir is reportedly on the list of defense contractors that have submitted proposals tied to the initiative.

And today, The New York Times reported that the Denver-based Palantir might be the company tapped to handle Trump's executive order that called for the federal government to merge information and data across its agencies. Palantir is also working with Tesla CEO Elon Musk's Department of Government Efficiency. Palantir reps are also talking to the Social Security Administration and the Internal Revenue Service for potential deals, according to the report.

In addition to the mounting public sector contracts and opportunities, its commercial segment is exhibiting exorbitant revenue growth. In its first quarter financial results, released earlier this month, Palantir reported year-over-year commercial revenue growth of 70%. Total revenue spiked nearly 40% year over year.

Palantir entered into a new strategic partnership with the Joint Commission earlier this month to revolutionize how healthcare organization and accreditation data are gathered and utilized. The nonprofit Joint Commission accredits and certifies more than 23,000 healthcare organizations and programs in the United States.

The company also entered a new partnership with Fannie Mae to expand its fraud-detection capabilities using AI-enabled crimes data science and investigation technology, the companies announced earlier this week.

Palantir shares have rocketed 70% year to date. In comparison, the iShares Expanded Tech-Software Sector ETF has only increased 3% in that time frame. The S&P 500 Index has climbed about 0.25% and the NASDAQ Composite Index has declined 1%.

Due to Palantir's monumental climb (it was trading at just above $20 one year ago), some analysts believe the stock is overvalued.

"For the fundamentals, Q1 earnings were impressive and guidance for both Q2 and the full year show that the outlook is bright," said Seeking Alpha analyst Bay Area Ideas. "Still, the P/S ratio is at nose-bleed levels as growth is unable to keep up with the multiple's expansion. Therefore, I downgrade Palantir to a sell rating as the valuation is unattractive and the technicals show that the top is likely in."

However, Seeking Alpha analyst Dhierin Bechai said that the Golden Dome project alone could be a substantial boon for Palantir.

"There is a lot where Palantir's capabilities can elevate the Golden Dome initiative," Bechai noted. "Through its Foundry, Gotham, and Maven systems, Palantir Technologies already has the ability to perform data and sensor fusion, which will be a critical component of the Golden Dome. Palantir’s expertise can also be to provide AI-powered decision support, tracking, and real-time prediction as well as discrimination purposes. So, what Palantir adds is not the prime integrator know-how, but an AI-driven capability layer."