Palantir shares surged after earnings, reflecting strong confidence in its AI-driven business model. Despite the sharp move higher, technical indicators show the stock is not overbought and continues to hold key support levels, underscoring underlying strength. The recent pullback before earnings was tied to broader weakness in software stocks as investors reassessed valuations amid AI disruption. While many traditional software firms face pressure, Palantir stands apart as a pure AI software provider, even though its premium valuation previously weighed on performance.
Earnings decisively beat expectations, with management guiding to sharply higher revenue for both the coming quarter and the full fiscal year. Growth accelerated to a record pace, reinforcing the narrative that AI adoption is translating into real revenues rather than just hype. However, much of the post-earnings surge appears driven by momentum buying, increasing short-term risk.
Beyond software, AI demand is rippling through hardware and automation. Teradyne delivered blowout results, highlighting strength in semiconductor testing and robotics tied to AI expansion. Macro data also surprised positively, as U.S. manufacturing returned to expansion, triggering broad equity buying amplified by market structure dynamics and early-month inflows.
Internationally, easing trade tensions boosted Indian equities, with tariff reductions expected to support exports and long-term growth prospects. Markets are balancing powerful AI revenue momentum against valuation discipline, with leadership evident in names like $PLTR, $IGV, $TER, $EPI, and $SPY.
Responsible Investor 