TLDR
- Palantir shares surge approximately 4.6% to $118.09 Monday following strategic AI collaboration announcement with Nvidia
- Joint initiative combines Nvidia’s Blackwell Ultra GPUs and Nemotron AI models with Palantir’s AIP, Foundry, and Apollo systems
- Solution designed for U.S. government agencies requiring secure, isolated AI infrastructure
- Stock had plummeted roughly 25% during June before Friday’s recovery, touching 52-week bottom at $106.37
- Second-quarter results expected August 10, with Wall Street forecasting $0.34 EPS and approximately $1.81B in revenue
Palantir Technologies (PLTR) shares are climbing 4.6% to $118.09 on Monday, extending Friday’s 5.3% recovery that ended a punishing seven-day decline.
Palantir Technologies Inc., PLTR
The rally comes after the company unveiled a strategic partnership with Nvidia (NVDA) focused on deploying open-source AI solutions within classified and isolated government networks.
Both companies are developing what they describe as an “intelligent engine” — integrating Nvidia’s Blackwell Ultra GPU technology and Nemotron open-source models with Palantir’s AIP, Ontology, Foundry, and Apollo infrastructure.
The initiative aims to serve U.S. government departments and critical infrastructure organizations that cannot transmit confidential information through public cloud services.
CEO Alex Karp articulated the value proposition directly: “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.”
Nvidia’s Jensen Huang emphasized that “open source AI is foundational to national security, public safety and U.S. technology leadership.”
Neither company revealed specific government agencies involved or financial terms associated with the partnership.
Software Outperforms Semiconductors
The Palantir-Nvidia announcement arrived amid a broader market shift favoring software companies over chip manufacturers.
Friday saw the iShares Expanded Tech-Software ETF (IGV) and SPDR S&P Software ETF (XSW) both climb nearly 4%, while the VanEck Semiconductor ETF (SMH) dropped approximately 4% — marking one of 2025’s widest divergences between these sectors. Monday’s trading extended this pattern, with IGV advancing 2.9% and XSW gaining 1.6%, compared to SMH’s modest 0.1% increase.
Nvidia shares are essentially unchanged for the session, suggesting investors are channeling AI-related optimism toward software plays currently.
Understanding the Recent Decline
Palantir experienced approximately 25% losses throughout June before Friday’s reversal, bottoming at a 52-week low of $106.37. Shares remain significantly below their 52-week peak of $207.52.
June’s downturn stemmed from multiple headwinds: escalating interest rate projections, European contract challenges — including possible loss of the UK NHS Federated Data Platform agreement — and reports of France pivoting toward domestic competitor ChapsVision.
Increased competition from Anthropic in enterprise AI contracts compounded these pressures.
This marks not the first Nvidia collaboration for Palantir. The companies showcased a combined AI platform at Nvidia’s GTC Washington conference in October 2025, later launching the “Chain Reaction” domestic AI infrastructure program in December 2025.
Monday’s announcement transforms that relationship into a commercial offering targeting the sovereign AI market segment.
Palantir shares currently trade beneath both their 50-day moving average (approximately $136) and 200-day moving average (roughly $159).
The stock is approaching Monday’s session peak of $119.08, with all 19 analyst revisions during the past 90 days showing upward adjustments.
Second-quarter earnings are slated for August 10, 2026. Wall Street consensus projects $0.34 earnings per share on revenue of approximately $1.81 billion.
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