Palantir Shares Jump 5% as Investors Shift to AI Software

Palantir Technologies' stock rose about 5.3% in Friday trading, reaching $113.34 after a broader rotation by investors from artificial‑intelligence chip makers into AI software companies. The gain came despite the share price remaining roughly 36% below its 2026 level and 45% below its all‑time high. Analysts note Palantir trades at roughly 77 times expected earnings for the year and 35 times expected sales, suggesting both upside potential if the software‑focused AI trade continues and significant downside risk if market sentiment turns bearish.

The move mirrors a wider trend where AI chip stocks have faced pullbacks, prompting capital to flow into high‑profile AI software plays like Palantir.