Palantir (PLTR) Stock Forecast: Nvidia Partnership, Burry Covered, Trump Bought - Is the Bottom In?

TradingKey - Palantir (NASDAQ: PLTR) has bounced off its uptrend line on the four-hour time frame, as buyers hold the support. The Relative Strength Index (RSI) sits at 61 showing positive momentum but not overbought conditions. The stock, which is down approx 29% YTD and 39% from its 52-week high of $207.52, recently drew investors' attention back following a series of developments on the back of July 1, Palantir partnering with Nvidia for an AI deal to deploy Nemotron AI in sovereign governments, short seller Michael Burry lowering his short position, and President Donald Trump owning at least $1 million shares of the company while revealing he added more to his holding. 

Additionally, DA Davidson upgraded the stock to Buy setting a $175 target, saying the stock is now more reasonably valued as investors look to rotate away from AI semiconductor hardware to AI software stocks in advance of earnings.

Nvidia Partnership and Karp's Take Down of 'Tokenmaxxing'

Palantir announced a strategic partnership with Nvidia on July 1 to pair Foundry, AIP with Nvidia's Nemotron AI models to support sovereign AI deployments for governments and infrastructure companies. Under the partnership, Palantir would deliver data, governance, and control plane while Nvidia supplies AI models and infrastructure. The partnership would expand Palantir's existing AI for defense and government capabilities, and is unlikely to threaten its competitors as Palantir doesn't develop the AI models. 

The announcement followed CEO Alex Karp's criticism of the AI providers like OpenAI and Anthropic charging on a per-token basis (he calls it "tokenmaxxing"), and that Palantir would charge on business outcomes rather than token consumption. That is in line with Palantir offering customers access to several AI models in a controlled AI environment, in other words, acting as the AI orchestration layer that sits on top of model companies.

Burry Lowers His Short as Rotation Continues into AI Software Stocks

Michael Burry lowering his short position in Palantir removed one of the most closely followed short positions from a bearish standpoint. It's unclear from the filing if Burry turned bullish, but he likely felt, given that the stock had risen from around $112 to $118, that the remaining downside potential was not that much more from that level. 

This fits into a broader story as AI semiconductor stocks were the best performing sector in the first half of 2026, and investors are gradually rotating into the underperformers of the year that have some sort of AI exposure. That rotation, coupled with some business wins for the company, such as U.S. Army's NGC2 Foundry contract being expanded, commercial customer AI deployments, and enterprise customer additions helped the stock rise this year. 

DA Davidson's $175 price target suggests that the upside potential is compelling enough, despite the stock trading at a premium.

PLTR Technical Setup — Trendline Support Holds, Resistance at $132.70

On the four-hour time frame, Palantir is holding above its uptrend line, with the Relative Strength Index (RSI) at 61.59 and no bearish divergence, in support of a constructive bullish trend. Resistance is at $132.76 to $146.84.

Palantir (PLTR) Stock Price Chart - Source: Tradingview

A strong breakout above $132.70 would make it much easier to see $146.80 as the next upside target. Initial support is at $119.10 with the $112 to $118 level serving as a support area.

• Entry: Above $132.70 to confirm breakout
• Target: $146.80
• Stop Loss: Below $119.10
• Catalysts: Partnership with Nvidia on sovereign AI deployments; Michael Burry reduced his short position; President Trump owning a $1M+ stake of the company while revealing he added more Shares of the company.
• Analyst rating view: DA Davidson upgraded PLTR to Buy with a $175 target.

What Is the Palantir–Nvidia AI Partnership?

Palantir and Nvidia joined forces on July 1 to help governments and other key businesses adopt artificial intelligence. Through their newly announced collaboration, Palantir's AIP and Foundry platforms will be paired with Nvidia's Nemotron AI models, giving companies a way to run AI inside tightly regulated and secure settings. The partnership builds off Palantir's long-established government sales, including the U.S. Army NGC2 Foundry program.

Why Did Michael Burry Reduce His Palantir Short?

Michael Burry said he trimmed his Palantir short when the stock was in the $112 to $118 range. He's not giving up on the idea that the company is overvalued, but at least the recent dip made his potential rewards look more reasonable to him. That update fueled the July 1 rally and was another positive sign for Palantir.

What Does Karp Mean by 'Tokenmaxxing'?

When Karp talked about "tokenmaxxing," he said he dislikes AI pricing methods that charge customers per token used. Instead, Karp said Palantir charges its customers for what it's achieved for them, and he's selling AIP as an orchestration tool that lets companies orchestrate AI, even though it can be based on whichever model they prefer.

Bottom Line

The upshot? Following a string of good news that all happened on July 1, including a joint AI partnership with Nvidia, a reduced short position from Burry, and growing analyst optimism, Palantir is trying to build a recovery. Palantir is also benefiting from a broader rotation to AI software, after semiconductor stocks took off in the first part of the year while Palantir lagged. On the technical front, momentum is constructive so far as long as PLTR holds above a key trendline support. A close above $132.70 could open the door to higher prices near $146.80, though $119.10 remains a significant support level to watch.