Palantir Technologies shares climbed to an all-time high Monday, topping Friday's record amid broader gains for U.S. stocks.

Shares of Palantir Technologies are climbing on Monday, continuing last week's rally. Investor optimism is being fueled by new partnerships, strong earnings and geopolitical tensions.

An impressive surge in the past few months has boosted Palantir stock to extremely expensive valuation levels. Palantir's potential to gain a bigger share of the AI software market could propel the stock higher despite the negative sentiment.