Palantir Technologies Inc.'s (PLTR  ) market capitalization has exceeded that of traditional defense industry leader Lockheed Martin Corp. (LMT  ), marking a significant shift in the defense and technology sector landscape.

What Happened: The data analytics company's market value reached $137.17 billion, surpassing Lockheed Martin's $135.25 billion, reflecting Palantir's growth in artificial intelligence and data analytics within modern defense and security.

Palantir stock reached an all-time high at $60.24 on Monday, with its stock up 263.33% year-to-date, pushing its market capitalization to $137.17 billion, surpassing Lockheed Martin's $135.25 billion. Lockheed Martin's stock has risen 25.09% to $570.58 in 2024, according to data from Benzinga Pro.

The stark difference in valuation metrics between the two companies highlights their distinct market positions. Palantir trades at a premium price-to-earnings ratio of 304.78. Meanwhile, Lockheed Martin maintains a more traditional defense industry P/E ratio of 20.64.

Why It Matters: This development underscores Palantir's meteoric rise in the market, reflecting its growing influence. This surge in market cap comes on the heels of a series of strategic moves by Palantir, including its partnership with Amazon.com Inc (AMZN  ) and Meta Platforms Inc (META  ) for U.S. defense initiatives.

Additionally, Palantir's strong financial performance, with a 30% year-over-year increase in total revenue and a 39% growth in customer count, has been lauded by analysts, with Wedbush analyst Dan Ives calling the company "The Messi of AI."

Meanwhile, Lockheed Martin has been making strategic moves of its own, such as partnering with Meta, Amazon, and Microsoft for a defense AI initiative and reporting a strong free cash flow of $2.1 billion in the third quarter.