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British government weighs removing Palantir from NHS data systems

Officials in the British government are exploring ways to eject defense, intelligence, and AI software company Palantir Technologies from data systems used by the National Health Service, the government-funded health system.

The Financial Times reports:

“The US company was awarded a seven-year £330mn contract in 2023 to create a data platform that collates health waiting lists, patient information and other sensitive data.

Its role has become an increasing source of controversy, given its ties to the US defence sector and its co-founder and CEO Alex Karp’s vocal support for Donald Trump’s immigration crackdown. MPs, NHS staff and medical trade unions have voiced concerns about Palantir’s suitability for managing data in national health systems.”

While Palantir’s AI software services business — aimed at corporate customers — is a fast-growing business line, the US government remains Palantir’s single largest source of revenue, accounting for $1.9 billion in sales in 2025. That’s almost as much as Palantir’s entire commercial division, which logged $2.1 billion in revenue in 2025.

But the company’s close ties to the US government — including providing services to US agencies such as Immigration and Customs Enforcement amid the Trump administration’s mass deportation program, as well as US intelligence and military services — have created resistance to growth in some other areas.

For instance, Switzerland repeatedly rejected Palantir systems, according to recent reporting from Swiss magazine Republik, after officials there raised concerns about data sovereignty and risks data could be accessed by the US government and intelligence services.

“The US company was awarded a seven-year £330mn contract in 2023 to create a data platform that collates health waiting lists, patient information and other sensitive data.

Its role has become an increasing source of controversy, given its ties to the US defence sector and its co-founder and CEO Alex Karp’s vocal support for Donald Trump’s immigration crackdown. MPs, NHS staff and medical trade unions have voiced concerns about Palantir’s suitability for managing data in national health systems.”

While Palantir’s AI software services business — aimed at corporate customers — is a fast-growing business line, the US government remains Palantir’s single largest source of revenue, accounting for $1.9 billion in sales in 2025. That’s almost as much as Palantir’s entire commercial division, which logged $2.1 billion in revenue in 2025.

But the company’s close ties to the US government — including providing services to US agencies such as Immigration and Customs Enforcement amid the Trump administration’s mass deportation program, as well as US intelligence and military services — have created resistance to growth in some other areas.

For instance, Switzerland repeatedly rejected Palantir systems, according to recent reporting from Swiss magazine Republik, after officials there raised concerns about data sovereignty and risks data could be accessed by the US government and intelligence services.

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AI server cluster maker Penguin Solutions takes flight

Small-cap AI server cluster maker Penguin Solutions surged Thursday after posting better-than-expected Q2 revenue and profit numbers Wednesday after the close, along with an increase in full-year sales and profit guidance.

The company, which was known as Smart Global Holdings until July 2024, has positioned itself as a provider of “end-to-end AI infrastructure solutions.”

Its Advanced Computing division designs and sells computers, cabling, and cooling systems, the server racks and clusters of racks AI data centers need. Its other main division sells flash and DRAM memory products.

It’s a pretty small company, with a fully diluted market cap of just over $1 billion and roughly 2,900 employees, according to FactSet.

The stock is volatile. Penguin dove during last year’s tariff tantrum that followed “Liberation Day” in April. Then it turned tail and doubled through early October amid a surge of call options activity, which tends to reflect retail interest. From the October peak, it then plunged by about 50%, before Thursday’s renaissance.

For what it’s worth, call options activity in Penguin is pretty busy today, too — relatively speaking — with roughly 2,625 traded as of 1:15 p.m. ET. That’s the most since early January, when the company last reported quarterly numbers. The average volume over the previous 25 trading sessions is about 325 calls a day, FactSet data shows.

The company, which was known as Smart Global Holdings until July 2024, has positioned itself as a provider of “end-to-end AI infrastructure solutions.”

Its Advanced Computing division designs and sells computers, cabling, and cooling systems, the server racks and clusters of racks AI data centers need. Its other main division sells flash and DRAM memory products.

It’s a pretty small company, with a fully diluted market cap of just over $1 billion and roughly 2,900 employees, according to FactSet.

The stock is volatile. Penguin dove during last year’s tariff tantrum that followed “Liberation Day” in April. Then it turned tail and doubled through early October amid a surge of call options activity, which tends to reflect retail interest. From the October peak, it then plunged by about 50%, before Thursday’s renaissance.

For what it’s worth, call options activity in Penguin is pretty busy today, too — relatively speaking — with roughly 2,625 traded as of 1:15 p.m. ET. That’s the most since early January, when the company last reported quarterly numbers. The average volume over the previous 25 trading sessions is about 325 calls a day, FactSet data shows.

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Momentum returns to optics stocks as the release valve for AI optimism

Potentially imminent end to the war? Buy optics stocks.

Maybe not? Buy optics stocks anyway.

Effectively all the juice left in the AI trade is coming from optics (and memory) stocks. And the latter group is taking a bit of a breather today while the former continues to surge.

Shares of Ciena Corp., Lumentum, and Coherent are building on recent big gains and among the biggest gainers in the S&P 500 near midday, while Applied Optoelectronics is also surging on Thursday.

These companies all provide solutions that help information move around in data centers, and thus are key beneficiaries of the aggressive capex plans of hyperscalers. Nvidia has invested $2 billion apiece in Coherent and Lumentum in deals that also include purchase commitments.

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Space stocks rip during a topsy-turvy day for the equity market

Satellite-services-from-space stocks surged Thursday after reports that Amazon is in talks to buy Globalstar, which provides voice and connectivity services from its satellite network. It also can’t hurt that the general mood around space is ebullient, following the successful launch of Artemis II on Thursday.

Planet Labs and ViaSat also soared on the news.

The gains for EchoStar — seen as a backdoor play at pre-IPO SpaceX exposure — and Rocket Lab were more muted, perhaps because a deep-pocketed competitor like Jeff Bezos getting serious about space services could complicate the plans of the two largest commercial space launch companies.

Rocket Lab and SpaceX see launch services as key to their aspirations of being major providers of voice and data services from low-Earth orbit satellites.

Tesla CEO Elon Musk’s SpaceX is the dominant provider of such services, and the early rumors on the company’s planned IPO — expected to be the largest ever — suggest the market is very excited about the prospects for the industry.

Elsewhere in the space stock world, Intuitive Machines — a maker of space infrastructure that provides services to NASA for lunar missions — also rose.

The gains for EchoStar — seen as a backdoor play at pre-IPO SpaceX exposure — and Rocket Lab were more muted, perhaps because a deep-pocketed competitor like Jeff Bezos getting serious about space services could complicate the plans of the two largest commercial space launch companies.

Rocket Lab and SpaceX see launch services as key to their aspirations of being major providers of voice and data services from low-Earth orbit satellites.

Tesla CEO Elon Musk’s SpaceX is the dominant provider of such services, and the early rumors on the company’s planned IPO — expected to be the largest ever — suggest the market is very excited about the prospects for the industry.

Elsewhere in the space stock world, Intuitive Machines — a maker of space infrastructure that provides services to NASA for lunar missions — also rose.

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