FTAI Aviation's AI Breakthrough: Why This Palantir Partner Could Rally Up 35% Further

FTAI Aviation has emerged as a compelling play on artificial intelligence innovation, quietly climbing 219% over the past year while Wall Street’s attention remained fixated on the obvious mega-cap AI names. The company’s recent strategic partnerships—particularly with Palantir for AI-powered maintenance optimization—reveal a hidden gem in the intersection of aviation maintenance, aerospace engineering, and the data center power revolution.

Palantir AI Technology Transforms FTAI’s Operational Efficiency

FTAI’s core business focuses on owning and maintaining aircraft engines for airlines and leasing companies. The company provides a cost-efficient alternative for engine maintenance once manufacturers’ service agreements expire, particularly for workhorse engines like the V2500 and CFM56. What makes FTAI interesting today, however, isn’t just its traditional maintenance business—it’s how artificial intelligence is reimagining every aspect of that operation.

In November, FTAI inked a multiyear strategic partnership with Palantir Technologies to deploy its AI platform across maintenance operations. The goal: achieve “faster production turnaround times and improved unit economics.” In practical terms, Palantir’s platform digitally models engines, predicts maintenance needs, and optimizes parts availability. This AI-driven approach directly translates to cost savings for airlines globally—a competitive advantage that could drive significant margin expansion.

Strategic Partnerships with GE Aerospace and CFM International Strengthen Market Position

FTAI’s dealmaking extends beyond Palantir. The company recently secured a multiyear strategic agreement with CFM International—the joint venture between GE Aerospace and French aerospace titan Safran—that guarantees OEM replacement parts, performance upgrades, and component repair services. This partnership is particularly valuable given GE Aerospace’s recent decision to push out the timeline for CFM56 engine maintenance demand from 2025 to 2027, extending the revenue runway for both companies.

The CFM56 powers the legacy Boeing 737 and Airbus A320 family—aircraft that will remain in service for decades. FTAI’s competitive yet collaborative approach allows it to service engines while supporting CFM’s long-term fleet ecosystem. This balance positions the company uniquely within the aviation maintenance supply chain.

FTAI Power: Tapping Into Data Center Boom With AI-Driven Turbines

Perhaps the most intriguing development is FTAI Power—a new business unit converting CFM56 engines into power turbines for data centers. Here’s where AI amplifies the opportunity. The company’s modular maintenance model, now enhanced by Palantir’s AI platform, digitally manages turbine performance and maintenance scheduling. Management targets delivering over 100 units annually by applying this proven maintenance methodology to power generation.

This venture directly capitalizes on surging data center power demands driven by AI inference and training workloads. As compute intensity accelerates globally, reliable, on-site power generation becomes a critical competitive advantage for data center operators. FTAI Power positions the company at the intersection of three mega-trends: aviation, AI infrastructure, and energy transition.

Valuation Premium, But Long-Term Growth Runway Justifies Entry

Trading at 43 times forward earnings, FTAI doesn’t come cheap. The valuation reflects market enthusiasm, and caution is warranted. However, the company’s trajectory suggests multiple expansion may be justified: aircraft engine maintenance represents a stable, recurring revenue stream; the CFM56 extension pushes cash generation further out; and FTAI Power introduces an entirely new growth vector with substantial addressable market potential.

The partnerships with Palantir and GE Aerospace—both global leaders in their respective domains—validate the company’s strategic direction and reduce execution risk. These aren’t vague partnerships; they represent tangible collaboration on AI-driven efficiency and power generation innovation.

For investors seeking exposure to AI technology’s real-world industrial applications beyond semiconductor plays, FTAI Aviation merits consideration. While current valuation suggests waiting for a market-driven pullback remains prudent, the company’s 219% climb shows only the beginning of a potentially much longer expansion story. Those comfortable with premium valuations may find a compelling entry point ahead, particularly as FTAI Power revenue ramps and Palantir’s AI integration delivers measurable unit economics improvements.