Palantir stock tumbles 33% as AI competition fears mount, despite new Nvidia partnership

What's wrong with Palantir? How investors see the stock

Military software company Palantir was supposed to be the stock for the current geopolitical moment, but its poor performance over the past year speaks to deeper disruptions happening in technology as a result of artificial intelligence. The iShares IGV tech software ETF is down about 14% since the beginning of the year, but Palantir - the third largest weighting in that ETF - has suffered more, sliding nearly 33% in the same period. Like the rest of the software business, Palantir has been facing a general threat from AI that has weighed on valuations across the sector. The company, led by CEO Alex Karp, has also had some sky-high expectations to live up to, including triple-digit price-to-earnings and enterprise value-to-sales multiples over the past several quarters, both of which are now trending down. But the real problem with the stock, analysts say, is fear about AI's increasing ability to handle the data-heavy workloads that Palantir specializes in. Looming specter "I think there is this specter hanging out in the future of Anthropic being able to do everything or OpenAI being able to do everything," John McPeake, senior research analyst at Rosenblatt, told CNBC on Friday. "It's having [someone] say, 'Create me a Palantir,' and it'll magically appear. That's not too much of an exaggeration. These large language models are perceived as code generators that can do anything. That's kind of weighing on them." Anthropic put out a blog post earlier this month about its improving data analytics capabilities that "doesn't sound great" for software companies like Palantir and Snowflake , analysts at UBS said in a mid-June note to clients. Karl Keirstead at UBS noted "rising investor concern" about Anthropic and OpenAI's data workload capabilities as well their ability to turn those powers into a commercial product. There's "concern ... that Anthropic and OpenAI will productize these features and launch [first-person] products that customers can use in lieu of spending on Palantir," he wrote. Potential overlap Palantir partner company Snowflake, which offers data management services used by Palantir's operating system, conceded earlier this month that there could be "overlap" between what the frontier AI models do and what the data specialists do. "In many ways, I am seeing the dynamics with the AI model providers similar to what has happened with the cloud providers where, yeah, there may be some overlap," Christian Kleinerman, Snowflake's head of product, said at a June 2 investor day. "We're more complementary than not at many customer sites, and so far it seems to be very similar dynamics." Palantir's customers are acknowledging this overlap with frontier AI on products like data mapping and graphing and are moving to take advantage of it. "I'd like to explore building a parallel open source graph database or using OpenAI and Anthropic," one Palantir customer said at the company's AIPCon 10 conference in San Francisco in early-June, according to a recent UBS note. "I'm not sure if these will deliver the same outcomes but I hope they will. It would be great to have them come in and drop a package that we can use. We want to be open, but Palantir is not open." Karp, Palantir's CEO, has pushed back hard against the capacity of large language models to replicate Palantir's product at the commercial level, calling it a "farce." "You get to [statements like] 'We're going to replicate Palantir by doing a deploy code.' I mean it's a complete farce," Karp told CNBC in early June. "It is not that large language models aren't crucial for the world; it's just the implementation is where the value is." But investors aren't waiting around, picking up on potential redundancies and resulting frustrations and making moves on them. Hedge fund manager Michael Burry, for example, is shorting the company and covering his past positions. "I covered half of my Palantir (PLTR) short at $107.15. I continue to hold puts," he wrote in a June 25 post on Substack . More positively, other investors see Palantir benefiting from the continued AI infrastructure buildout, which they expect to result in more proven revenue and monetization trends in coming quarters. "The market is way mispricing what this demand trend is going to look like over the next six to nine months, what the monetization trends will look like on enterprise, and that goes from Microsoft to Oracle ... and even some of the software names like Palantir," Dan Ives, head of technology research at Wedbush, told CNBC on Friday.

Why Is Palantir Stock Surging On Wednesday? - Palantir Technologies (NASDAQ:PLTR)

Palantir Technologies Inc. (NASDAQ:PLTR) stock is trading at slightly elevated levels on Wednesday. The upward movement follows a Tuesday announcement detailing two separate strategic initiatives: a sovereign artificial intelligence partnership with Nvidia Corp and an expanded commercial agreement with Surf Air Mobility Inc. Nasdaq futures are down 0.39% while S&P 500 futures have shed 0.15%. Strategic Sovereign AI Collaboration With Nvidia The partnership with Nvidia focuses on delivering an intelligent engine to run Nvidia AI and Nemotron open models in sovereign environments, targeting U.S. government agencies and critical infrastructure. The collaboration integrates Nvidia's AI platform with Palantir's AIP, Ontology, Foundry and Apollo products. "Combining Palantir infrastructure with Nvidia's AI and Nemotron models will allow the U.S. government to unleash the full power of LLMs while removing the underlying security risks," said Alex Karp, co-founder and CEO of Palantir. Jensen Huang, founder and CEO of Nvidia, added, "Palantir's Nemotron-powered intelligent engine shows how open models can strengthen America's leadership in AI." Expanded Commercial Aviation Partnership Palantir also expanded its commercial partnership with Surf Air Mobility, committing additional engineering and go-to-market resources to accelerate SurfOS development. The system utilizes Palantir's AIP and Foundry. "With Foundry and AIP powering SurfOS, we see a clear opportunity to build and define the central operating system for the future of aviation and air mobility," said Ted Mabrey, Global Head of Commercial at Palantir. Financial Context And Market Outlook The stock gains come amid a challenging year-to-date period for the company, with shares down 30.50% at $116.67. This follows a strong first quarter where Palantir posted revenue of $1.63 billion, beating Wall Street expectations of $1.54 billion. Additionally, 'Big Short' investor Michael Burry previously disclosed he has shorted Palantir, alongside short positions in Tesla Inc. and Nvidia. Critical Technical Levels for PLTR to Watch From a longer-term trend perspective, PLTR is still in a clear downtrend: it's trading 6.7% below its 20-day SMA, 11.8% below its 50-day SMA, 14.3% below its 100-day SMA, and 24.6% below its 200-day SMA. The crossover picture reinforces that bearish structure, with the 20-day SMA below the 50-day SMA and a death cross (50-day SMA below the 200-day SMA) that occurred in February. PLTR Price Action: Palantir Technologies shares were up 2.42% at $119.49 during premarket trading on Wednesday, according to Benzinga Pro data. This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. Market News and Data brought to you by Benzinga APIs To add Benzinga News as your preferred source on Google, click here.

Palantir In Focus: Company Strikes Nvidia Sovereign AI Deal, Deepens Surf Air Partnership - Palantir Tech

* Palantir stock is trading at slightly elevated levels. Where is PLTR stock headed? The Nvidia Partnership Key capabilities include explicit data authorization, secure perimeter enforcement, customer-specific isolation, data portability, and full auditability -- allowing government agencies to deploy models in classified and air-gapped environments while continually improving them based on mission-specific feedback. "Combining Palantir infrastructure with Nvidia's AI and Nemotron models will allow the U.S. government to unleash the full power of LLMs while removing the underlying security risks," said Alex Karp, co-founder and CEO of Palantir. "Palantir's Nemotron-powered intelligent engine shows how open models can strengthen America's leadership in AI," said Jensen Huang, founder and CEO of Nvidia. The Surf Air Mobility Expansion Separately, Palantir announced an expansion of its partnership with Surf Air Mobility, committing additional engineering and go-to-market resources to accelerate the development and commercial release of SurfOS, including OperatorOS, OwnerOS, and SurfOS Enterprise Solutions. The expanded partnership builds on the successful commercial launch of BrokerOS and a recent multi-million-dollar contract with Wheels Up to serve as the launch customer for Enterprise BrokerOS. SurfOS is powered by Palantir's AIP and Foundry and is designed to modernize the private aviation and air mobility industries. "With Foundry and AIP powering SurfOS, we see a clear opportunity to build and define the central operating system for the future of aviation and air mobility," said Ted Mabrey, Global Head of Commercial at Palantir. Palantir Shares Trade Flat PLTR Price Action: At the time of publication, Palantir shares are trading 0.17% higher at $115.90, according to data from Benzinga Pro. Image via Shutterstock This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. Market News and Data brought to you by Benzinga APIs To add Benzinga News as your preferred source on Google, click here.

Palantir's Surf Air Mobility and Nvidia deals answer question investors keep asking

Palantir Technologies Inc. (PLTR) confirmed two separate partnerships on Monday, June 29, one with a private aviation startup and one with Nvidia. Most coverage will treat these as routine corporate news. The pattern underneath them is not routine, however. It points to how Palantir plans to defend a valuation that has come under serious pressure this year. Palantir is working with Surf Air Mobility to expand commercial use of its OperatorOS, OwnerOS, and SurfOS platforms, according to a company press release. Separately, Palantir struck a deal to run Nvidia's AI and Nemotron open models inside sovereign environments built for U.S. government agencies and critical infrastructure. The Surf Air deal is about depth. Palantir is dedicating resources specifically to win over aircraft operators, brokers, owners, and manufacturers in private aviation. It's a market Ted Mabrey, Palantir's global head of commercial, called fragmented and reliant on manual processes. The Nvidia deal, on the other hand, is about defensibility. It gives U.S. agencies a way to run powerful open models without sending proprietary data into a closed system they don't control. The Nvidia relationship is not new, and that matters This is not Palantir's first deal with Nvidia. The two companies already integrated Nvidia's GPU computing and Nemotron models into Palantir's Ontology framework last year, with Lowe's signed on as an early adopter, building a digital replica of its supply chain. The June 29 announcement extends that foundation into a sovereign AI deployment engine aimed squarely at national security customers. Palantir CEO Alex Karp framed it as a way of letting the government use large language models without proprietary insights leaking into the weights of closed, foreign-controlled models. Nvidia CEO Jensen Huang positioned it as infrastructure for U.S. AI leadership. That framing is not accidental. Palantir has spent the past year arguing that open, controllable AI is a national security necessity, and Nvidia needs partners who can deploy its open models into the most sensitive corners of government. Each company is using the other to make its pitch more credible. Chip Somodevilla / Getty Images A strong quarter has not stopped PLTR stock from falling Here is the tension the Palantir news is trying to address. Its revenue grew 85% year over year to $1.63 billion in the most recent quarter, according to the company's Q1 2026 earnings release. U.S. commercial revenue grew even faster, up 133% to $595 million, and the company raised its full-year guidance to roughly $7.65 billion. Karp used that release to compare Palantir's 145% Rule of 40 score to a small group of elite AI infrastructure companies, including Nvidia. That comparison was not a throwaway line. It was Palantir staking a claim to sit in the same category as the chipmaker whose stock has not been punished the way Palantir's has. Despite those numbers, Palantir shares have fallen roughly 32% so far this year and touched a 52-week low near $106 in late June, according to market data. The sell-off has little to do with execution. It reflects investor anxiety that Palantir's premium valuation cannot survive rising competition from newer AI model providers, including Anthropic, in the enterprise software space. That is the gap these two deals are built to close. Surf Air shows Palantir can still win specialized commercial verticals on its own. The Nvidia deal shows it can anchor itself to the infrastructure layer of AI rather than compete directly against it. Wall Street will keep pricing the tension, not the strategy Palantir's bet is that government and infrastructure customers will pay for security and control even as cheaper, more capable models proliferate elsewhere. Nvidia's bet is that being the open, controllable option keeps it relevant, no matter which application layer wins. Both bets depend on a narrative holding up under pressure neither company fully controls. The next test is not another partnership announcement. It is whether Palantir's commercial growth rate holds when it laps the 133% comparison next quarter, and whether investors decide that is enough. The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc. This story was originally published June 30, 2026 at 6:33 AM.

5-star analyst gives beaten-down Palantir stock a bullish verdict

Palantir (PLTR) stock has effectively gone from AI favorite to AI laggard. Though we saw a resurgence late last week, shares are down seven straight sessions and remain down 37% in 2026, as investors fret over the stock's valuation and the competitive edge it may be harder to defend. Hence, the market is treating Palantir with caution. UBS is taking the other side. After recent meetings with top executives and Palantir's latest AIPCon event, 5-star analyst Karl Keirstead came away with a more bullish read than the recent stock action suggests. For perspective, Keirstead's 5-star rating from TipRanks ranks him No. 542 among 12,331 Wall Street analysts and No. 1,294 among 28,973 experts. His calls show a 61% success rate, with 251 of 411 ratings profitable, and an average return of 13% per rating, adding weight to his Palantir view. Kierstead isn't ignoring the debate over AI competition, but he appears far less worried than the market does. What UBS says investors are missing about Palantir stock UBS analyst Karl Keirstead is pushing back against the stock market's colder view of Palantir as worries mount over OpenAI, Anthropic, Databricks, and others moving deeper into the company's territory. Keirstead sees that fear as incomplete. "At 46x our 2027E FCF, we believe that Palantir shares are undervalued relative to medium-term growth," he said, pointing to an estimated 3-year CAGR of about 55% and high profitability. According to Seeking Alpha, Palantir's profitability profile looks pristine to say the least. Its 84% gross margin is far above the sector median of around 50%, while its 44% net income margin sharply outpaces peers. Just as important, Palantir's 34% levered free cash flow margin shows that its growth is converting efficiently into cash. At the heart of UBS's argument is the idea that investors may be treating Palantir as just another AI software layer. After meetings with management and Palantir's latest AIPCon, Keirstead highlighted the company's "complexity and depth", saying its operating system goes beyond LLM deployment, data ingestion, and semantic layers. According to him, no AIPCon customer said LLMs can currently replace Palantir for data workloads. A global systems-integration partner also said Palantir's "action engine" gives it a "5-year moat". Why Palantir's AI moat is back in focus Palantir's AI moat has been unshakeable over the years. What it has done so brilliantly is connect AI to messy real-world operations where decisions, permissions, workflows, and data quality matter. Front and center are its ontology layer and operating system, which help a company map how its business actually works, then let AI act within that map. The recent wins show why that matters. SAP expanded its work with Palantir in May to use AIP for AI-supported data migration, a painful enterprise problem where mistakes can prove to be incredibly costly. Palantir says its AIP tools helped move more than 20,000 SAP location records to S/4HANA in two weeks. The same pattern appears outside software. Reuters reported in January that Palantir signed a multi-year HD Hyundai deal worth hundreds of millions of dollars after its tools helped lift shipbuilding production by about 30%. Government work adds another proof point. Reuters reported last year that the U.S. Army consolidated software contracts into a Palantir enterprise deal worth up to $10 billion over 10 years. So even though LLMs can be powerful, Palantir is selling the layer that turns AI into controlled decisions inside complex institutions. Wall Street price targets for Palantir stock * Wedbush's Dan Ives has a $230 target, the most aggressive named bull case, tied to Palantir's AI demand, according to Yahoo Finance. * Citi's Tyler Radke cut Palantir to $210 ahead of Q1 but kept a buy rating, citing broader software weakness, according to Investor's Business Daily. * Morgan Stanley kept an Equal Weight rating and $205 target, balancing AI upside against valuation risk, according to TheStreet. * MarketBeat puts Palantir's average target at $192.76, with a high of $255 and a low of $90. Sources: Yahoo Finance, Investor's Business Daily, TheStreet, and MarketBeat. Palantir's chart is still in repair mode Barchart's June 29 technical table shows Palantir stock is still looking to mount a snapback, but the trend is still damaged. The stock is down 25% over 20 days, 30% versus the 200-day period, and 34% year to date. Hence, the recent bounce hasn't reversed the larger sell-off. The first level to watch is the 5-day moving average at $113. Holding above that would show short-term buyers are still defending the rebound. The bigger test is the 20-day average at $130.20, followed by the 50-day average at $136. A move back above those levels would make the recovery look more credible. Momentum is still weak. Relative strength sits between 39 and 46, while stochastic readings near 10% to 20% suggest the stock is beaten down but not yet out of the woods. Volatility is also high, with the average true range near 5.3%-5.9%, suggesting Palantir could keep swinging sharply before a clearer trend returns. The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc. This story was originally published June 29, 2026 at 7:47 PM.

Why Is Palantir Technologies Stock Gaining Monday? - Palantir Technologies (NASDAQ:PLTR), NVIDIA (NASDAQ:

Palantir Expands Sovereign AI Capabilities The latest catalyst came from Palantir's announcement of an "intelligent engine" that deploys NVIDIA Nemotron open models in sovereign environments. The platform targets government agencies and critical U.S. infrastructure operators that require secure, mission-critical AI deployments while maintaining operational control over sensitive data. According to the company, the platform includes explicit data authorization, secure perimeter enforcement, customer-specific isolation, data portability, the right to erase data and full auditability. Those features are designed to help organizations meet strict regulatory and security requirements. Palantir Expands Surf Air Mobility Partnership Separately, Palantir and Surf Air Mobility on Monday expanded their partnership to accelerate the commercialization of SurfOS. The companies are adding engineering and go-to-market resources to speed the rollout of OperatorOS, OwnerOS and SurfOS Enterprise Solutions. The expansion follows the commercial launch of BrokerOS and Surf Air Mobility's recent multi-million-dollar Enterprise BrokerOS agreement with Wheels Up. Powered by Palantir's Artificial Intelligence Platform (AIP) and Foundry, SurfOS is designed to modernize private aviation by helping operators, brokers, owners and manufacturers improve efficiency while reducing costs. The companies said the expanded partnership will accelerate product development, including the deployment of AIP agents, and position SurfOS as a central operating system for the private aviation and air mobility industry. Technical Picture Still Faces Resistance Despite Monday's rally, Palantir remains below several important technical levels. The stock trades 9.7% below its 20-day simple moving average of $130.23, 13.5% below its 50-day SMA of $135.95 and 25.8% below its 200-day SMA of $158.60. That setup suggests the longer-term downtrend remains intact. The February "death cross," when the 50-day SMA fell below the 200-day SMA, continues to weigh on the technical outlook. Momentum also remains subdued. The Moving Average Convergence Divergence (MACD) indicator sits below its signal line, while the histogram remains negative. That typically indicates buyers need stronger follow-through before a sustained uptrend can develop. The next major resistance level is near $136, close to the 50-day moving average. Earnings And Analyst Outlook The company's next earnings report is expected on August 3. Analysts expect earnings of 33 cents per share on revenue of $1.81 billion. That compares with earnings of 16 cents per share and revenue of $1 billion a year earlier. Palantir trades at roughly 126.9 times earnings, reflecting its premium valuation. Benzinga Edge Ratings Benzinga Edge assigns Palantir a Momentum score of 6.5, reflecting soft recent momentum despite Monday's rally. The stock earns a Value score of 2.66 because of its premium valuation. However, its Growth score of 97.73 underscores strong expectations for continued expansion. ETF Exposure Large inflows or outflows in those funds can create additional buying or selling pressure because of the stock's sizable weighting. Price Action PLTR Stock Price Activity: Palantir Technologies shares were up 4.51% at $118.02 at the time of publication on Monday, according to Benzinga Pro data. Photo via Shutterstock Market News and Data brought to you by Benzinga APIs To add Benzinga News as your preferred source on Google, click here.

Why is Palantir stock rallying today? By Investing.com

Investing.com -- Palantir Technologies stock is rising 3.7% in pre-open trading today, extending a powerful multi-session rally that was ignited by a convergence of high-impact company-specific catalysts. The most significant of these was the announcement of a strategic sovereign AI collaboration with Nvidia, under which the two companies will deploy Nvidia's Nemotron open-source AI models within Palantir's platforms for U.S. government agencies and critical infrastructure operators -- a deal that positions Palantir at the core of how sensitive government environments adopt advanced AI. Simultaneously, the U.S. Army selected Palantir Foundry as the cloud data layer for its Next Generation Command and Control (NGC2) program, described as the Army's highest-priority modernization effort, signaling durable, multi-year defense revenue. Adding further fuel, DA Davidson upgraded PLTR from Neutral to Buy and raised its price target to $175 from $165, arguing that Palantir has grown into its valuation as profits have soared and the earnings multiple has compressed. Investor sentiment received an additional lift from President Trump's 2025 certified financial disclosure, which revealed he holds at least $1 million in Palantir shares and recently added to the position. CEO Alex Karp also appeared on CNBC, publicly condemning the token-based pricing model used by frontier AI labs, arguing that enterprises are being subjected to what he characterized as a "wealth tax" on tokens -- commentary that reinforced Palantir's differentiated, outcome-based platform model and drew fresh attention to the stock. The broader context is also supportive at the sector level. A notable rotation has been underway, with capital flowing out of AI semiconductor names and back into AI software stocks, lifting peers across the space. Guggenheim upgraded Salesforce and ServiceNow to Buy, arguing that AI-disruption fears had pushed software valuations too low -- a thesis that directly benefits Palantir. Despite this sector tailwind, the main U.S. indices remain modestly negative today, with the S&P 500 down 0.2% and the Nasdaq off 0.7%, underscoring that Palantir's pre-market move is driven almost entirely by company-specific news rather than macro momentum. Taken together, the Nvidia partnership, the Army NGC2 contract, the DA Davidson upgrade, the Trump disclosure, and Karp's high-profile commentary have created a rare alignment of catalysts that is sustaining buying pressure into today's pre-market session, even as the broader market trades in the red and Palantir's shares remain well below their 52-week high of $207.52. This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Why is Palantir stock rallying today? By Investing.com

Investing.com -- Palantir Technologies stock rose 4.3% in morning trading today after the company unveiled a high-profile strategic alliance with Nvidia to bring Nvidia's Nemotron open-source AI models into classified and sovereign environments for U.S. government agencies and critical infrastructure operators. The collaboration integrates Nvidia's AI platform and accelerated computing capabilities with Palantir's suite of products -- including AIP, Ontology, Foundry, and Apollo -- enabling government customers to train, customize, and deploy advanced language models without exposing sensitive data to external model parameters. A second corporate announcement added further momentum: Palantir expanded its existing software partnership with Surf Air Mobility, committing additional engineering and commercial resources to accelerate the rollout of OperatorOS, OwnerOS, and SurfOS Enterprise Solutions for the private aviation sector. Adding to the positive tone, prominent short-seller Michael Burry cut his Palantir put option holdings by roughly half in the week ending June 26, a move that removed a well-publicized bearish overhang and triggered a wave of short-covering that had been building since Burry's earlier prediction of a steep price decline. The stock's move today also benefited from a broader market recovery. U.S. equities rebounded after a turbulent prior week, with the S&P 500 adding 0.4%, the Dow Jones gaining 0.6%, and the Nasdaq rising 0.7%, as investors rotated back into AI-related names. No major economic data was scheduled for release today; the prior week's PCE inflation reading -- which showed headline inflation at its highest level since April 2023 -- had already been absorbed by markets and came in broadly in line with forecasts, while the Federal Reserve held rates steady at its June meeting for the fourth consecutive time. Taken together, the Nvidia partnership provided the clearest company-specific catalyst for today's move, reinforcing Palantir's positioning as a critical software layer for government AI deployment at a moment when the stock had been trading near its 52-week low of $106.37. The combination of a high-profile deal, a reduced short position, and a recovering broader market created the conditions for shares to trade as high as $119.08 intraday. This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.