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Palantir Slides to Start 2026 as Investors Rotate to Chip Stocks

Profit taking alongside a shift toward chipmakers drove the reversal.

Overview

  • Shares fell about 5.6% Friday to roughly $167.86 after a weeklong drop near 10% as money moved from software into semiconductor names.
  • The pullback followed a 2025 surge of about 134%–140%, with some investors deferring gains by selling at the new year.
  • Recent results remained strong, including Q3 revenue of $1.18 billion up 63% year over year, a 12th GAAP-profitable quarter, and higher full‑year revenue and free‑cash‑flow guidance.
  • Valuation stays elevated at around 390 times trailing earnings, and more than half of revenue comes from government clients, which adds renewal and political risk.
  • Traders are eyeing support near $175 and resistance around $180–$182, plus an unconfirmed next earnings date and key U.S. economic data for the next catalyst.