Palantir Snaps Losing Streak. Gains Amid Broad Market Rally.

Shares in Palantir Technologies rebounded on Friday amid a broad market rally. A recent pullback in Palantir stock along with other developments had raised questions over whether the boom in artificial intelligence stocks is winding down.

On the stock market today, Palantir stock rose 1.6% to close at 158.74. On Thursday, Palantir stock edged up a fraction to close at 156.18, breaking a six session losing streak.

With Friday's gain, Palatir stock is up about 111% in 2025 but down roughly 16% from its all-time high.

In addition, Palantir still trades above its 50-day moving average today.

Is Boom In AI Stocks Losing Steam?

Further, Palantir stock hit an all-time high of 190 on Aug. 12. But a rotation out of some hot AI stocks could be underway.

In one development, the chief executive of well-funded, fast-growing AI startup OpenAI last week said an AI bubble could soon burst. Also, a Massachusetts Institute of Technology study on AI projects at large companies showed underwhelming results on return on investment.

Short seller Andrew Left, founder of Citron Research, also said he's betting against further gains for Palantir stock amid its lofty valuation. A federal judge in April rejected Left's bid to dismiss a U.S. Securities and Exchange Commission lawsuit.

"Shares of Palantir have been trending downward amid a broader market digestion and rotation, particularly impacting the information technology sector., said CFRA analyst Janice Quek, in a report published Thursday.

"We believe recent developments such as the MIT study on the return on investment of AI and a short seller report questioning Palantir's valuation amid competition with other AI firms also contributed to the fall. Investors could see more volatility in the short term. Still, we maintain bullish expectations on Palantir, arguing that it is outperforming peers at current growth and acceleration rates, as its solutions attract new customers and drive higher spend from existing ones."

Palantir stock has gained amid views that the company seems poised to win more U.S. government business during the Trump administration. Also, retail investor enthusiasm for generative artificial intelligence plays has lifted Palantir stock, although commercial-related revenue has yet to ramp up.

Palantir Stock Technical Ratings

Further, Palantir stock advanced 340% in 2024, with much of the gain coming after Donald Trump's Presidential election win.

Meanwhile, Palantir's Relative Strength Rating stands at 98 out of a best-possible 99.

But PLTR stock holds a C Accumulation/Distribution Rating. That rating analyzes price and volume changes in a stock over the past 13 weeks of trading. A+ signifies heavy institutional buying; E means heavy selling. Think of a C grade as neutral.

Also, Palantir stock holds a Composite Rating of 98 out of a best-possible 99, according to IBD Stock Checkup. IBD's Composite Rating combines five separate proprietary ratings into one easy-to-use rating. The best growth stocks have a Composite Rating of 90 or better.

Palantir stock has a 21-day ATR of 4.52%. The average true range is a metric available on IBD's MarketSurge that gauges the characteristic breadth of a stock's behavior. Stocks that tend to make large jumps or dives in daily action, the kind that can trigger sell rules and shake investors out of a stock, have a high ATR. Stocks that tend to make more incremental moves have lower ATRs.

IBD suggests stocks with ATRs of up to 8%.

Follow Reinhardt Krause on X, formerly Twitter, @reinhardtk_tech for updates on artificial intelligence, cybersecurity and cloud computing.