Shares of Palantir Technologies rose Monday as the stock continues to recover after snapping a seven-day losing streak on Friday. A new partnership with Nvidia could keep the stock moving higher after the recent selloff.
Palantir stock advanced 4.2% to $117.65 in premarket trading on Monday and was set to add to a 5.3% gain from Friday.
Shares of Alex Karp's software company have been in a rut in June, falling 25% and angling toward their worst monthly performance in five years. However, the stock ended a seven-day losing streak on Friday and could continue to advance on the strength of a newly announced partnership with Nvidia.
Palantir said Monday in a media release it has entered into a new strategic initiative with the chips giant to use the Nvidia AI ecosystem and Nvidia Nemotron -- Nvidia's artificial-intelligence models -- to build custom models for the U.S. government.
Under the partnership, Nvidia's AI platform and Palantir's critical infrastructure products will come together to provide U.S. government agencies with a secure "intelligent engine" for training and the deployment of AI models.
"Combining Palantir infrastructure with Nvidia's AI and Nemotron models will allow the U.S. government to unleash the full power of LLMs while removing the underlying security risks and rational concerns around proprietary insights migrating into the weights of closed models," Palantir CEO Karp said.
This isn't the first time Palantir has teamed up with Nvidia but the announcement comes at a fortuitous time for Palantir investors.
After three consecutive years of mammoth gains, Palantir stock has fallen 34% in 2026 on broad fears that AI could disrupt software. The pain for Palantir investors has ratcheted up in June, with shares sinking 25% on the back of that seven-day losing streak.
During the losing streak, spanning from June 16 to June 25, Palantir broke below multiple key levels of technical support. Shares have also traded well below their 50-day moving average as well as their 200-day moving average. Palantir stock's 50-day moving average currently around $136; the 200-day moving average is about $159, according to chart analysis.
But Palantir stock may have found its bottom after closing on Thursday at $107.27. The new Nvidia partnership might just be the catalyst to propel shares higher.
Write to Kit Norton at kit.norton@barrons.com
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(END) Dow Jones Newswires
June 29, 2026 08:49 ET (12:49 GMT)
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