Why Palantir Stock Is Skyrocketing Today

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Palantir (PLTR +9.42%) stock is seeing strong bullish momentum in Wednesday's trading. The artificial intelligence leader's share price was up 9% as of 11:35 a.m. ET. At the same point in the daily session, the S&P 500 was up 0.3%. Meanwhile, the Nasdaq Composite was flat.

Palantir's valuation is moving higher today as investors have continued to rotate back into AI software stocks. The company's recent announcement of a new partnership with Nvidia and news that Michael Burry has reduced his short position on the stock are also factoring into today's gains.

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AI software stocks are regaining favor with investors

For most of this year, AI semiconductor stocks have seen very strong bullish momentum. Demand for chips used to power artificial intelligence technology stacks has been red hot, and the dynamic has actually caused selling pressures for many companies in the AI software space. Lately, there have been some signs that this trend is reversing.

Most leading AI chip stocks are seeing sell-offs in today's trading, and it looks like investment capital is flowing back into top software names. If the trend continues, Palantir stock could be a top beneficiary.

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NASDAQ: PLTR

Palantir Technologies

Today's Change

(9.42%) $10.99

Current Price

$127.66

Key Data Points

Market Cap

$280B

Day's Range

$119.34 - $127.88

52wk Range

$106.37 - $207.52

Volume

1.4M

Avg Vol

45M

Gross Margin

84.07%

Palantir is rising on Nvidia and Michael Burry news

Palantir announced yesterday that it had entered into a new partnership with Nvidia to deliver new AI models for government customers. Palantir will be helping the GPU hardware leader develop engines for its Nvidia AI and Nemotron open models to support functional advancements for U.S. government agencies and infrastructure programs.

In addition to that positive catalyst, Palantir's valuation is also getting a boost from news that Michael Burry has trimmed his short bet against the company. The stock has seen meaningful pullbacks this year in conjunction with bearish comments from Burry, but news that the famous investor has reduced his bet against the company has some investors betting that Palantir's share price may have recently reached a near-term bottom.

US5000.07%
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