The power of a new Nvidia partnership was on full display with Palantir Technologies this week.
It was just Thursday that Palantir stock closed lower for a seventh-consecutive day, falling further and further below key technical levels.
But that's in the distant past now, with the stock rising 8.8% to $126.96 on Wednesday amid its best four-day stretch in nearly a year, according to Dow Jones Market Data. Shares have gained 18% since June 25.
Shares of Alex Karp's software company moved higher Wednesday in tandem with several other software names. ServiceNow gained 6.3% while Salesforce advanced 4.9% after Guggenheim upgraded both ServiceNow and Salesforce to Buy, with the firm writing that belief that artificial intelligence will kill off software is a "hallucination" and that the "Armageddon scenario" is "misaligned with reality."
Financial disclosures from President Donald Trump also showed dividend payments from sizable stakes in many companies, including Palantir.
But even more so for Palantir is the afterglow from Monday, when the company announced it had entered into a new strategic initiative with Nvidia to build custom artificial intelligence 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.
"What aligns me with Nvidia, and I think is what the technical customers want, which is control over their compute, their models, their data stack and their alpha," CEO Alex Karp told CNBC's Squawk Box on Wednesday, as way of explanation of the new partnership.
Karp added that Palantir has "critical infrastructure" across the U.S., Ukraine, and Israel, adding that everyone who uses AI large language models "on the battlefield" runs them on top of Palantir's Ontology platform. The Ontology system, generally speaking, takes AI models and makes them more secure and precise.
While this isn't the first time Palantir has teamed up with Nvidia, the announcement Monday came at a fortuitous time for Palantir investors.
After three consecutive years of mammoth gains, Palantir stock has fallen 39% in 2026 on broad fears that AI could disrupt software. The pain for Palantir investors 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.
But it looks like Palantir stock found its bottom after closing on Thursday at $107.27 and the new Nvidia partnership appears to be the catalyst propelling shares higher.
Write to Kit Norton at kit.norton@barrons.com
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(END) Dow Jones Newswires
July 01, 2026 14:09 ET (18:09 GMT)
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