Palantir Slides 5.6% as AI Hype Meets Early-Year Reality Check
Palantir Technologies Inc. (PLTR) opened 2026 with a 5.6% decline, closing at $167.86 amid heavy trading volume. The drop reflects a broader market rotation out of high-valuation AI software plays and into semiconductor stocks like Nvidia and Intel, which rallied 4% on the day.
Analysts note Palantir remains a bellwether for generative AI commercialization, but traders are testing the sustainability of last year's rally. The selloff lacked company-specific catalysts, instead tracking a sector-wide recalibration of risk appetite.
Market participants now await earnings reports and U.S. economic data for fresh directional cues, with the Philadelphia SE Semiconductor Index serving as a key benchmark for the AI hardware trade.