Palantir Hits 52-Week Low, Worst Month Since 2021
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- Palantir shares fell 5.5% Thursday for a seventh consecutive losing day, closing at $107.27 — a new 52-week low — and shedding 31.5% month-to-date, on pace for its worst month since February 2021
- Palantir has lost nearly 50% from its all-time closing high of $207.18 reached last November and now trades well below its 50-day moving average of $137.04, a level technicians watch for intermediate momentum
- Palantir's forward earnings multiple has compressed from over 250x at its November peak to roughly 61x today, still steeply above the iShares Expanded Tech-Software Sector ETF's 23x, per FactSet
- Nancy Tengler, CEO and CIO at Laffer Tengler Investments, attributed the selloff to a rotation out of software names — including ServiceNow, CrowdStrike, and Microsoft — and into semiconductor heavyweights like Micron
- Micron shares jumped about 16% Thursday after blockbuster earnings and strong forward guidance signaled the memory-chip supply-demand imbalance won't ease soon, suggesting the AI hardware trade still has further to run
- Despite the stock slide, Palantir's AI business continues to draw praise; venture-capital firm Lumasenti's Larry Goldberg told MarketWatch that Palantir's data-unifying platform is a moat 'no one else has that yet'
Why it matters: Palantir's premium valuation — once the envy of software — is being actively repriced as investors chase AI infrastructure plays. Micron's blockbuster report and 16% rally Thursday suggest the semiconductor rotation that has already cost Palantir half its value since November isn't finished, meaning richly-valued software names like ServiceNow, CrowdStrike, and Microsoft remain exposed until chip-stock enthusiasm cools.
