Palantir Technologies NASDAQ:PLTR climbed in Wednesday trading after investors rotated back into artificial intelligence software stocks, while fresh developments involving Nvidia NASDAQ:NVDA and investor Michael Burry (Trades, Portfolio) added to the momentum.
Shares of Palantir Technologies NASDAQ:PLTR rose about 9% in late-morning trading, outperforming a modest gain in the S&P 500.
The rally followed Palantir's recent agreement with Nvidia NASDAQ:NVDA 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.
Investor sentiment also improved after reports indicated Michael Burry (Trades, Portfolio) had reduced his short position against Palantir. The move came after earlier bearish bets on the stock had weighed on sentiment in recent months.
Market participants also appeared to rotate capital from AI semiconductor companies into AI software names. While several chipmakers traded lower during the session, software-focused companies including Palantir attracted renewed buying interest.