Palantir Technologies Inc (NYSE:PLTR) shares have more than doubled since the start of the year, largely driven by the AI boom and the company’s positioning in the space. AI stocks experienced weakness on Monday, but momentum was renewed on Tuesday.
What To Know: Much of the optimism surrounding AI has been fueled by Microsoft-backed ChatGPT and the recent surge in demand for AI chips.
Last month, Nvidia reported better-than-expected financial results and issued an especially strong outlook. The more optimistic outlook was driven by huge demand for the company’s AI chips. The demand for these chips was centered around the massive interest in ChatGPT. Nvidia’s H100 GPUs power large language models (LLMs) like ChatGPT.
Nvidia recently said that its newest innovations speed up LLMs by 30X over the previous generation.
The rally in Palantir shares accelerated last month after the company reported better-than-expected quarterly results and guided for continued profitability in 2023. CEO Alex Karp highlighted extraordinary demand for the company’s AI products in recent months, similar to Nvidia.
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PLTR Price Action: Palantir is up more than 80% over the last three months.
Shares of PLTR closed Tuesday up 4.81% at $14.61, according to Benzinga Pro.
Image by Innova Labs from Pixabay
