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Palantir’s Blowout Quarter Turns Into Stock Slide, Signaling Risk for Nvidia Earnings

Lofty expectations can sink richly valued AI shares despite strong growth.

Overview

  • Palantir reported 85% revenue growth to $1.63 billion and raised its 2026 sales outlook to 71%.
  • The surge was driven by an 84% jump in U.S. government revenue and a more than doubling of U.S. commercial sales.
  • Despite beating forecasts, the stock fell more than 8% in the two sessions after the report as investors balked at the price tag.
  • Palantir entered 2026 with a price-to-sales ratio above 100 and still sits north of 60, a level markets rarely sustain for long.
  • The response is a caution for Nvidia’s upcoming results since even strong gains in GPUs and its CUDA software may not satisfy investors if hopes are set too high.