NEW YORK, January 3, 2026, 03:48 ET — Market closed
- Palantir shares fell about 5.6% on the first trading day of 2026, lagging the broader market.
- Trading was heavy as money rotated toward chipmakers and away from software, according to market commentary.
- Investors are now looking to the next earnings timing and key U.S. data for fresh direction.
Palantir Technologies Inc (PLTR) shares fell about 5.6% on Friday, the first U.S. trading day of 2026, and last traded at $167.86. The stock ranged from $166.38 to $182.93 on volume of about 60.6 million shares.
The drop matters because investors are starting the year by stress-testing the AI trade, separating infrastructure winners from software names that have rallied hard. Palantir has become a popular proxy for that debate.
Early-year positioning can exaggerate moves, especially in high-growth stocks. When traders reduce risk, they often sell the names that ran the most.
A Nasdaq.com column said there was no company-specific news driving the move, pointing instead to a “rotation” — investors shifting money — out of software and into semiconductor stocks. It also cited profit-taking, when investors sell winners to lock in gains, as positioning resets for the new year. Nasdaq
Broader markets were mixed: the Dow and S&P 500 ended higher on Friday while the Nasdaq was flat, Reuters reported. The Philadelphia SE Semiconductor index jumped 4% as Nvidia and Intel gained, and Tesla slid 2.6% after annual sales fell for a second year. “Investors might be a little bit more conscious about some of the valuations that they’re paying for some of the AI plays,” said Joe Mazzola, head of trading and derivatives strategist at Charles Schwab. Reuters
That backdrop matters for Palantir because the stock has been treated as a bet on the commercialization of generative AI — systems that can create text, code or images from prompts. Rotations toward chips and away from software can hit sentiment-driven names quickly.
Palantir sells data-analysis software used by governments and businesses, and demand has been boosted by wider adoption of artificial intelligence, the company has said. The stock’s valuation has drawn repeated debate as growth expectations reset from quarter to quarter. Reuters
On the technical side, TipRanks said Palantir is trading around its 50-day moving average — a commonly watched trend line — with the level near $181.20. TipRanks also showed a consensus Hold rating and an average price target of $187.87. TipRanks
Before the next U.S. session on Monday, investors will be watching whether the shares stabilize above Friday’s low or extend the pullback. A steadier tape could bring dip-buyers back; another sharp leg down would keep the focus on risk controls.
The next clear company catalyst is earnings. Wall Street Horizon lists Palantir’s next report for Monday, Feb. 2, after the market close, but says the date is unconfirmed by the company. Wall Street Horizon
Macro events will also shape appetite for high-growth software. Stocks whose value depends on profits further out — often called “long-duration” stocks — tend to react most when interest-rate expectations change.
