Palantir Stock Alert

Palantir stock faces renewed selling pressure as valuation concerns and market rotation weigh on the name.

Palantir Faces Investor Selloff Amid AI Growth Momentum

Palantir shares closed slightly higher on Thursday, snapping a six day losing streak and finishing at 156.18. The stock is down about 13% over the past five sessions but remains up roughly 108% in 2025, supported by demand for AI solutions and government contracts. Investors have grown cautious about valuation and momentum as OpenAI chief executive warns of a potential AI boom and MIT research points to disappointing returns on some AI projects. Short sellers have targeted Palantir’s multiples, while analysts note the pullback reflects a wider rotation in technology stocks. TipRanks shows a Hold rating with a 154.47 price target, signaling only a small downside from current levels. The larger question is whether Palantir can turn its AI capabilities into durable revenue from government and enterprise clients.

The pullback comes as investors reassess high growth bets in tech and demand clearer proof of repeatable revenue. Palantir’s edge lies in its data platforms and government footprint, but growth hinges on converting pilots into long term contracts and maintaining pricing power. The market’s appetite for big AI names has cooled, increasing pressure on high multiples and raising the bar for Palantir’s next earnings signal. If the AI craze loses steam, Palantir faces multiple compression even with solid technology, making execution and risk discipline crucial.

Highlights

Markets move in waves and Palantir will need clear wins to sustain momentum.