New York, Feb 2, 2026, 17:26 EST — After-hours
Palantir’s shares surged roughly 7% in after-hours trading Monday following a forecast of about $7.2 billion in revenue for 2026, fueling momentum in AI-related stocks beyond the closing bell. During the regular session, the stock rose 0.8%, ending at $147.76.
Investors have grown cautious about expensive AI software stocks, seeking clearer proof that corporate AI spending is shifting from pilots to full-scale deployment. Palantir projected 2026 revenue between $7.18 billion and $7.20 billion, with first-quarter revenue expected to hit $1.53 billion to $1.54 billion. Once again, growth in the U.S. commercial segment is driving results.
A separate report highlighted some hardware challenges: OpenAI has been exploring alternatives to certain Nvidia chips for inference — the phase where a trained AI model generates responses — according to eight sources familiar with the matter. The company has evaluated competitors like Advanced Micro Devices and startups such as Cerebras and Groq, the report noted, while CEO Sam Altman told reporters that customers “put a big premium on speed for coding work.” Nvidia responded that “Customers continue to choose NVIDIA for inference,” and an OpenAI spokesperson confirmed the company still depends on Nvidia for most of its inference fleet. Reuters
Palantir posted adjusted earnings of $0.25 per share on $1.41 billion in revenue for the quarter ending Dec. 31, topping Wall Street forecasts. Notably, its U.S. revenue surpassed $1 billion for the first time. U.S. commercial sales surged 137% to $507 million, while government revenue rose 66% to $570 million, according to Barron’s.
Palantir’s heavy reliance on U.S. government contracts continues to draw scrutiny, especially those tied to U.S. Immigration and Customs Enforcement. Capgemini faced backlash from French lawmakers over a U.S. unit with an ICE contract and said it would sell that division. Palantir’s shares have dropped more than 15% this month amid Wall Street doubts over its valuation. CEO Alex Karp defended the company, saying “the state and its agents can see only what ought to be seen.” Meanwhile, Jacob Bourne at Emarketer noted that while government work is still crucial, commercial business is becoming increasingly important for growth. Reuters
Nvidia shares slipped 2.9%, ending at $185.61. AMD jumped 4.0% to $246.27, and Alphabet added 1.7% to close at $343.69.
Snowflake announced a $200 million partnership with OpenAI to embed its models into Snowflake’s cloud data platform, aiming to sell “AI agents” — software that automates tasks across business systems. This deal builds on a previous collaboration by making OpenAI’s models accessible on Snowflake via all three major cloud providers, not just Microsoft Azure. Customers like Canva and WHOOP are already tapping into the combined offering. Reuters
Snowflake shares ended the session down 1.0%, closing at $190.68.
AMD’s quarterly earnings land after the close on Tuesday, Feb. 3. Investors will be watching closely for any updates on AI accelerators — the chips powering AI models — as that could move the needle.
Nvidia plans to release its fiscal fourth-quarter results on Wednesday, Feb. 25, followed by a conference call at 5 p.m. ET, according to the company’s investor calendar.
Tuesday’s session will test if Palantir’s outlook can boost other AI-software stocks. Meanwhile, OpenAI’s ongoing search for chips could add strain to the already crowded AI-hardware space, just ahead of AMD’s earnings release after the bell.
