Today's revelation that NATO has acquired Palantir Technologies' (NASDAQ:PLTR) artificial intelligence-powered military system, known as Maven Smart System, has placed the Denver-based software company in a key position for more government wins in the future, according to Wedbush.

Palantir shares had climbed 6% by noon trading on Monday.

"While the terms of the deal were not disclosed and is set to be operational within the next 30 days, this was another win for Karp & Co. as more federal customers turn to PLTR for improved AI capabilities on the military front which is starting to heat up," said Wedbush analysts, led by Daniel Ives, in a Monday note. 

Wedbush reiterated its Outperform rating on the stock and its 12-month price target of $120. Palantir also remains a top name to own in 2025 as it continues to gain traction with commercial and federal contracts.

"We believe this deal represents an additional tailwind for PLTR with AI initiatives across both the US and European governments accelerating as AI remains a strategic focus on the federal front with Palantir in essence in the sweet spot to benefit from a tidal wave of federal spending on AI across North America and Europe," Ives added.

The Maven Smart System is already being utilized across all the U.S. military branches, including the Army, Air Force, Space Force, Navy and US Marine Corps. It secured a five-year contract valued at  $100M by the DEVCOM Army Research Laboratory last September.