Why Palantir Stock Is Up Today
Key Points
Palantir wants to help the U.S. government protect its most sensitive AI systems.
Following a steep fall, the software specialist's stock valuation is now more reasonable.
- 10 stocks we like better than Palantir Technologies ›
Shares of Palantir Technologies (NASDAQ: PLTR) gained on Monday after the data analytics leader announced a strategic collaboration with semiconductor colossus Nvidia (NASDAQ: NVDA).
Image source: The Motley Fool.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
Mission-critical AI
Palantir will help U.S. government agencies run Nvidia's Nemotron models in secure environments. The two tech giants will provide an "intelligent engine" to train, deploy, and improve these powerful artificial intelligence (AI) models while ensuring customers retain control of their data and intellectual property.
"Open-source AI is foundational to national security, public safety, and U.S. technology leadership," Nvidia CEO Jensen Huang said. "Palantir's Nemotron-powered intelligent engine shows how open models can strengthen America's leadership in AI -- giving U.S. government agencies a secure, customizable, and fully controlled foundation to build mission-critical AI systems."
Palantir's shares are becoming more attractive for investors
Most of the recent criticism for Palantir's stock has centered not on the performance of its business but on the valuation of its shares. Yet with its stock price down 44% from its 52-week high in November, that skepticism is beginning to wane.
At roughly 100 times its trailing 12-month free cash of $2.7 billion, Palantir's shares still aren't cheap. But for a top-tier artificial intelligence provider that's projected to grow earnings by 96% in 2026, that multiple isn't as irrational as it may at first appear.
Should you buy stock in Palantir Technologies right now?
Before you buy stock in Palantir Technologies, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Palantir Technologies wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $398,052!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,181,688!*
Now, it’s worth noting Stock Advisor’s total average return is 892% — a market-crushing outperformance compared to 205% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
See the 10 stocks »
*Stock Advisor returns as of June 29, 2026.
Joe Tenebruso has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Nvidia and Palantir Technologies. The Motley Fool has a disclosure policy.
Recommended Articles
