Shares of data-analytics firm Palantir Technologies have surged since being tapped to join the S&P 500 index.
Many investors regard the megacap companies of the "Magnificent Seven" as the biggest leaders in artificial intelligence (AI). Some smaller players made waves in the AI realm for a time, but many of them have fallen off investors' radar.
Palantir Technologies has developed an artificial intelligence platform that can help companies automate processes and enhance their decision-making. An advisory company, Forrester, ranked Palantir's platform as the best, even when compared against offerings from big tech giants.
Even after notching 437% gains since early last year, Palantir Technologies stock -- and its business -- continue to gain ground. The announcement that Palantir will be joining the S&P 500 fueled a big move this week.
Palantir Technologies (PLTR) might move higher on growing optimism about its earnings prospects, which is reflected by its upgrade to a Zacks Rank #2 (Buy).
Palantir will join the S&P 500 index, which could boost interest in Palantir stock.
Palantir has all the momentum in the world right now.
Although many politicians across the United States political spectrum are active stock traders, none of them has so far bought Palantir (NYSE: PLTR) stock, at least not directly, but this might change if the shares of the big data analytics software provider join the S&P 500 index.
Palantir's stock is on fire, but it could be getting overheated. Innodata could grow faster than Palantir as it rolls out more generative AI tools.
Nvidia and Palantir are designing solutions to increase AI software revenue.
The company's analytical capabilities have driven this stock. A high valuation leaves it vulnerable, but not necessarily from a recession.
Palantir will join the S&P 500 later this month. Just after the S&P inclusion news, affected stocks tend to outperform.