What Happened?
Shares of data analytics company Palantir Technologies (NASDAQ: PLTR) jumped 3.1% in the afternoon session after the company announced two significant artificial intelligence deals, including a partnership with NVIDIA and an expanded agreement with Surf Air Mobility.
The collaboration with NVIDIA aims to provide sovereign AI solutions for U.S. government agencies and critical infrastructure operators. This initiative involves integrating NVIDIA's Nemotron open-source AI models with Palantir's platform, creating customized models for sensitive environments where security is crucial. Separately, Palantir expanded its work with Surf Air Mobility to speed up the development and commercial release of its aviation software products, known as SurfOS. Investors reacted positively to the expanding AI initiatives.
After the initial pop, the shares cooled down to $116.35, up 2.8% from the previous close.
Is now the time to buy Palantir Technologies? Access our full analysis report here, it’s free.
What Is The Market Telling Us
Palantir Technologies’s shares are very volatile and have had 28 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 7 days ago when the stock dropped 7% on the news that a confluence of high-profile AI talent departures from Alphabet, and a regulatory overhang pulled the entire communication-services and software complex lower. Alphabet fell roughly 6%. Microsoft slipped as well.
When the two largest software-adjacent megacaps decline together, the sector indices follow mechanically given their index weight. But the deeper driver was the market's persistent fear that AI agents would erode the subscription model that underpins traditional enterprise software economics. That fear had been compounding all year. Salesforce trades around $152, down roughly 43% year-to-date and near its 52-week low. Adobe fell approximately 49% over the past year and has not traded this cheap on earnings in over a decade.
The previous week's Accenture collapse, a near-20% single-day drop after the consulting giant cut its growth outlook and explicitly cited AI compressing demand for traditional IT services acted as a fresh confirmation of the thesis. If the largest IT services firm in the world is signaling that AI is eating its billable hours, investors extend the same logic to the software vendors whose products those hours configure.
The counterargument is that the selling has become indiscriminate. Salesforce is a Rule-of-40 company retiring 10% of its shares through a $25 billion buyback, carrying the largest AI revenue line in the category, and it is acquiring usage-based billing platforms like m3ter precisely to monetize AI agent actions rather than seats. Monness upgraded the stock to Buy the previous week on valuation. The market is pricing the cannibalization as if it already happened; the income statements might be indicating otherwise. But until these companies can prove that AI revenue scales faster than it erodes the legacy subscription base, software might remain in the penalty box even on days when the rest of tech (especially chip stocks) is celebrating.
Palantir Technologies is down 30.7% since the beginning of the year, and at $116.35 per share, it is trading 43.8% below its 52-week high of $207.18 from November 2025. Despite the year-to-date decline, investors who bought $1,000 worth of Palantir Technologies’s shares 5 years ago would now be looking at an investment worth $4,369.
WHILE YOU’RE HERE: The Next Palantir? One satellite company captures images of every point on Earth. Every single day. The Pentagon wants it. Hedge funds are using it to beat earnings. You’ve probably never heard of it.
This is what the early days of Palantir looked like before it became a $437 billion giant. Same playbook. Different technology. If you missed Palantir, you need to see this. Claim The Stock Ticker for Free HERE.
