What Happened?
Shares of data analytics company Palantir Technologies (NASDAQ: PLTR) jumped 2.9% in the afternoon session after a broader market rally drove investor optimism in artificial intelligence and big tech stocks.
The S&P 500, Dow Jones, and Nasdaq all pushed higher, approaching record levels set late last year. Much of the positive momentum was linked to the technology sector, with a particular focus on companies advancing artificial intelligence, a key theme at the annual CES trade show in Las Vegas. This continued a powerful trend from 2025, when AI-related developments were a primary catalyst for the market's bull run. The upbeat sentiment was further supported by hopes for easier monetary policy from the Federal Reserve following a weaker-than-expected US Services PMI reading.
After the initial pop the shares cooled down to $179.16, up 3% from previous close.
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What Is The Market Telling Us
Palantir Technologies’s shares are extremely volatile and have had 44 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 1 day ago when the stock gained 4.5% after news of a U.S. military operation in Venezuela boosted investor sentiment.
Palantir, which provided the U.S. government with data analytics and AI software, often reacted to U.S. defense-related operations. Increased military and security activity typically boosted spending on data and AI platforms, areas where the company held strong ties with U.S. government and defense agencies. More than half of Palantir's revenue came from these government contracts. The stock's rise was also supported by a broader surge of investor enthusiasm for technology-themed stocks at the start of the new year, with the upcoming CES exhibition expected to heavily feature AI.
Palantir Technologies is up 6.7% since the beginning of the year, but at $179.16 per share, it is still trading 13.5% below its 52-week high of $207.18 from November 2025. Investors who bought $1,000 worth of Palantir Technologies’s shares 5 years ago would now be looking at an investment worth $7,610.
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