Palantir Technologies Inc. (PLTR) may not be delivering the blockbuster returns it did in 2024, but the data analytics giant is still outpacing most of its software peers and the broader Nasdaq composite in 2025. Even as investors pull back from artificial intelligence (AI) stocks, Palantir’s resilience stands out in a cooling market.
Palantir Outshines the Market Despite Recent Dip
On Thursday, Palantir stock slipped 2.4% to $90.09, reflecting broader market jitters following President Donald Trump’s announcement of sweeping auto tariffs. However, year-to-date, Palantir shares have climbed 19%, far surpassing the Nasdaq’s 7% decline and outperforming many major enterprise software companies.
While Palantir is still trading well below its all-time high of $125.41, reached on February 19, its relative strength in a weakening AI sector is notable. The stock is currently hovering near its 50-day moving average, a key technical level closely watched by traders.
AI Stocks Struggle, but Palantir Holds Up
The broader AI market has faced growing challenges in 2025. Leading chipmaker Nvidia (NVDA), cloud networking firm Arista Networks (ANET), and customer relationship management giant Salesforce (CRM) have all stumbled this year. Salesforce stock has dropped 17%, ServiceNow (NOW) has tumbled 22%, and Workday (WDAY) is down 5%.
Palantir’s relative stability has caught the attention of investors, particularly as other AI stocks have struggled with slowing demand, valuation concerns, and uncertainty surrounding the impact of new tariffs.
DeepSeek Roils the AI Sector
Adding to the AI sector’s volatility is the emergence of DeepSeek, a China-based startup that has disrupted the market by releasing a powerful AI training model developed with significantly less computing power. This unexpected breakthrough has fueled fears of AI commoditization, which could lower the competitive moat for companies relying heavily on AI model development.
However, some analysts see this as a potential opportunity for companies like Palantir. If AI models become more accessible, it could accelerate the development of new applications. Palantir, with its focus on monetizing AI-driven products and services, may benefit from this shift.
Trump Tariffs and Recession Fears Add Pressure
Beyond AI sector struggles, Trump’s recent tariffs and the growing threat of a US economic recession are adding uncertainty to the broader market. While these factors have weighed on software stocks, Palantir’s core business—providing government and commercial clients with advanced data analytics and AI-powered decision-making tools—remains relatively insulated.
Palantir has secured major government contracts and expanded its presence in the defense sector, giving it a steady revenue stream that could help it weather economic headwinds better than more consumer-focused tech firms.
The Path Ahead for Palantir
Although Palantir is no longer riding the meteoric 340% surge it experienced in 2024, its 2025 performance demonstrates its staying power in a challenging market. As AI stocks face growing headwinds, Palantir’s focus on deploying AI for practical, revenue-generating applications could give it an edge over peers that remain heavily dependent on AI hype.
If the company successfully monetizes new products and expands its government and enterprise contracts, it could continue to outpace the broader tech sector. Despite market volatility, Palantir’s resilience makes it one of the AI stocks to watch in 2025.
