New York, May 28, 2026, 12:03 p.m. EDT
- Palantir shares gained roughly 5.7% in late-morning trade, moving ahead of both the S&P 500 and Nasdaq-related ETFs.
- Investors moved back into AI and data software stocks. Snowflake jumped too after posting strong results.
- Valuation is still tricky. Some analysts point to Palantir’s strong growth, but say the stock is priced for a long stretch of flawless execution.
Palantir Technologies shares traded higher on Thursday as the stock bounced along with other AI software names. Investors came back to growth stocks following a rough start to the week.
Shares traded up 5.7% to $140.10, hitting a session high of $140.23. More than 22 million shares changed hands. Market cap was close to $360 billion. The SPDR S&P 500 ETF added 0.5%, while the Invesco QQQ Trust climbed 0.7%.
Palantir is stuck between investors jumping into AI names and those questioning the price of growth, which made the move matter. U.S. markets traded on regular hours; Nasdaq says May 25, not May 28, is the 2026 Memorial Day holiday. Standard trading runs from 9:30 a.m. to 4:00 p.m. Eastern.
The broader market gave a boost. Reuters said Wall Street traded mixed to higher as investors looked at oil moves tied to Iran, inflation numbers, and the AI trade. Snowflake jumped after raising its full-year product revenue outlook and signing a five-year AI infrastructure agreement with Amazon Web Services. Datadog and MongoDB shares were up too.
Palantir still faced an overhang. Two days ago Investor’s Business Daily said the stock was lagging a lot of software names in 2026, despite Palantir turning in 85% first-quarter revenue growth and good U.S. government demand.
Palantir’s May earnings are still the main story. Reuters said Palantir pushed up its 2026 revenue target to $7.65 billion to $7.66 billion, up from the old estimate of $7.18 billion to $7.20 billion, as it sees more demand from U.S. government and commercial clients. AI is now a key part of Palantir’s appeal, with software built to analyze data and offer predictions.
Palantir execs stuck to the growth pitch on the call. CFO Dave Glazer told analysts that Q1 revenue jumped 85% to $1.633 billion, with U.S. commercial revenue up 133% to $595 million. CEO Alex Karp said the updated full-year outlook shows “confidence in an accelerating U.S. market.” Investing.com
Defense remains in play. In April, Reuters reported the Pentagon is set to make Palantir’s Maven AI system a core military tool. Maven sorts data fed from satellites, drones, radars and more to spot threats or targets.
But the risk here isn’t light. Jefferies’ Brent Thill has said Palantir’s business looks solid, but the price doesn’t allow for much to go wrong. He thinks the shares could get hit if “any moderation in AI enthusiasm” shows up or if growth slows. Business Insider
The stock is stuck between bulls and skeptics. Bulls point to a rare AI software name, strong government business, commercial sales climbing and solid margins. Skeptics argue Palantir needs to keep up its breakneck growth just to hold the current valuation.
Thursday saw buyers in control. Now Palantir has to keep the rally going as investors stack it up against quicker-growing names like Snowflake, trying to figure out how much growth is baked into the price already.
