Palantir shares surged Wednesday after the company unveiled an expanded artificial-intelligence partnership with Nvidia, a deal that lifted the broader AI-software sector.
According to an AOL report, Palantir stock (NASDAQ: PLTR) rose 9% to $127.31 in midday trading, leading a rally after the company announced what it described as a "sovereign-AI" partnership with Nvidia. Sovereign AI refers to systems that let governments and nations run AI on infrastructure they control. The same report noted Palo Alto Networks climbed 4% amid the sector-wide gains.
Barron's framed the Nvidia tie-up as the catalyst that ended what it called Palantir's "brutal losing streak," reversing a stretch of declines for the stock.
The rally wasn't driven by Nvidia alone. StocksToTrade and timothysykes.com both reported that a U.S. Army contract win added to the momentum and helped fuel more bullish price targets from analysts.
Yahoo Finance reported that Palantir is also expanding an AI push tied to Surf Air, pairing the Nvidia news with a second deal that analysts weighed for what it means for shareholders.
Sentiment among skeptics appeared to shift as well. TradingView reported that investor Michael Burry — known for contrarian bets — pulled back a bearish position around the time of the announcements.
Why it matters: Palantir has been one of the most closely watched and hotly debated AI stocks, and a headline partnership with Nvidia, the dominant AI-chip maker, signals how tightly the two companies' fortunes — and the market's AI enthusiasm — are now intertwined.