Palantir Technologies shares surged nearly 9% in early trading on Tuesday, after the company lifted its annual revenue forecast for the second time this year, banking on strong demand for its AI-related services from governments and companies.

Data analytics firm Palantir on Monday reported a 48% rise in quarterly revenue, driven by surging demand for its artificial intelligence (AI) software, particularly among US corporate clients. Revenue for the second quarter rose to just over $1 billion.