FTAI Aviation Surges 219%: The Hidden AI Play Catching Palantir and GE Aerospace's Attention

The market’s obsession with Palantir has made one of its most interesting partnerships fly under the radar. FTAI Aviation, a company many investors overlook, has climbed an impressive 219% over the past year—and its strategic collaborations with both Palantir and GE Aerospace are reshaping the investment thesis entirely.

From Engine Maintenance to Energy Innovation

FTAI Aviation doesn’t sound glamorous, but its core business is deceptively competitive. The company owns and maintains aircraft engines for airlines, cargo operators, and leasing companies—specifically the V2500 and CFM56 engines. What makes this valuable is timing: when airlines’ long-term service agreements with manufacturers expire, FTAI offers a cost-effective alternative for ongoing maintenance.

The CFM56, produced through a GE Aerospace and Safran joint venture, powers the legacy Airbus A320 and Boeing 737 fleets—meaning FTAI services a massive installed base of aircraft still in active operation globally. This wasn’t flashy before, but recent developments have transformed the narrative significantly.

Strategic Partnerships Rewriting the Growth Story

In November, FTAI locked in a multiyear strategic agreement with GE Aerospace’s CFM International, securing guaranteed supply of replacement parts, thrust performance upgrades, and component repair services. The timing couldn’t be better: GE Aerospace just pushed back the expected decline in CFM56 maintenance visits from 2025 to 2027, buying FTAI years of sustained demand from a strengthening airline industry.

But the real catalyst emerged shortly after. FTAI partnered with Palantir to deploy artificial intelligence technology across its operations, targeting faster production turnaround times and improved unit economics. This isn’t just a supply chain optimization—it’s the foundation for what comes next.

FTAI Power: Where Data Centers Meet Aerospace Expertise

The game-changer is FTAI Power, a new business line converting CFM56 engines into power turbines for data centers. Management projects delivering over 100 units annually by adapting its modular maintenance model to power turbine production. That’s where Palantir’s AI platform becomes critical: it enables predictive maintenance modeling and identifies service schedules before failures occur.

The timing aligns perfectly with the data center boom. As AI applications consume unprecedented amounts of energy, the infrastructure to power computing clusters is becoming as valuable as the chips themselves. FTAI is positioning itself at the intersection of two massive trends—legacy aerospace manufacturing expertise and exploding data center energy demands.

The Numbers: Growth Potential vs. Current Valuation

Trading at 43 times forward earnings, FTAI isn’t cheap by traditional metrics. The stock commands a premium, reflecting market expectations for significant growth. Yet the company now has multiple catalysts: established aircraft engine servicing, expanded CFM56 maintenance visibility extending to 2027, and a nascent but potentially massive power turbine business powered by Palantir’s AI technology.

The partnerships reduce execution risk considerably. GE Aerospace’s endorsement signals confidence in FTAI’s capabilities, while Palantir’s involvement validates the AI-driven productivity gains. Both are industry leaders with reputations to protect, suggesting this isn’t speculative hype but genuine operational collaboration.

Investment Perspective: Monitor for Opportunities

FTAI Aviation represents a compelling asymmetry for investors comfortable with high valuations: a company with tangible near-term cash flow from aircraft maintenance, plus significant medium-term upside from FTAI Power capturing data center infrastructure demand. The Palantir connection isn’t incidental—it’s structural to the business model.

That said, the 43x valuation means the market has already priced in substantial growth. While the partnerships validate the strategy, patient investors might find more attractive entry points during market-driven pullbacks. The long-term thesis—combining aerospace maintenance expertise with AI-powered data center energy solutions—remains intact regardless of near-term volatility.