Palantir shares rose about 9% on Wednesday after the company agreed to work with Nvidia on AI models for U.S. government customers. The gain built on reports that investor Michael Burry had pulled back a short bet against the stock, while traders rotated out of chipmakers and into AI software names.
Palantir Technologies rose about 9% in late-morning trading on Wednesday, outperforming a modest gain in the S&P 500. The move came as investors rotated back into artificial intelligence software stocks.
The rally followed Palantir's recent agreement with Nvidia to help develop AI models for U.S. government customers. The partnership aims to support Nvidia AI and Nemotron open models for government agencies and infrastructure applications.
Sentiment also improved after reports indicated Michael Burry had reduced his short position against Palantir. Earlier short-selling bets on the stock had weighed on sentiment in recent months.
Market participants also appeared to shift capital from AI semiconductor companies into AI software names. Several chipmakers traded lower during the session, while software-focused companies including Palantir drew renewed buying interest.
Source: TradingView (snippet-based)
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