Last month, none of the Magnficent Seven stocks — including Nvidia (NVDA), Microsoft (MSFT) and Alphabet (GOOGL) — made the list of new buys by the best mutual funds. But fellow artificial intelligence leader Palantir Technologies (PLTR) did. Now as Nvidia stock pops to yet another record high, Palantir stock is targeting a breakout past a trendline entry.
X
Top-performing money managers scooped up over $366 million worth of shares in Palantir. Palantir also sports eight quarters of rising fund ownership.
Boosted by AI buzz, Palantir delivered first quarter earnings that met views while the revenue topped estimates. Sales rose 21% year-over-year to $634.3 million. Earnings grew 60% to 8 cents a share. Meanwhile, Wall Street forecasts 33% earnings growth to 33 cents a share for the full year.
Magnificent Seven Stocks: Nvidia Topples Apple, Takes Aim At Microsoft
Palantir Spies Opportunity With Department of Defense, Oracle
Based in Denver, Palantir has its hands in a wide range of industries, including defense, intelligence, energy, autos, data protection, health care, retail, semiconductors and more. Commercial and government clients include the likes of Airbus (EADSY), Ferrari (RACE) and the United Kingdom’s NHS. Palantir also offers MetaConstellation, harnessing the power of satellite constellations to empower decision-makers back on Earth.
Last month, the U.S. Department of Defense Chief Digital and Artificial Intelligence Office awarded a contract to Palantir USG, a Palantir subsidiary. The goal of the production contract is to make licenses of Palantir’s AI-enabled operating system available throughout the Pentagon.
In April, Palantir and software giant Oracle (ORCL) joined forces to deliver mission-critical AI solutions to governments and businesses. The partnership combines Oracle’s distributed cloud and AI infrastructure with Palantir’s leading AI and decision acceleration platforms. Further, Palantir and Oracle aim to help organizations increase efficiency, address sovereignty requirements and help clients outpace adversaries.
Palantir Stock Eyes Early Breakout
While continuing to work on a third-stage consolidation with a 27.50 buy point, Palantir stock is now targeting an earlier trendline entry.
The entry is based on drawing a downward-sloping line from a 27.50 peak across the 25.36 point Palantir hit after reporting earnings on May 6. The early entry would emerge if shares of Palantir can move past that trendline around 24.
Palantir showed rebounding strength Wednesday by jumping back above its 50-day moving average. The AI stock is up again early Thursday, currently trading at 23.31.
Oracle also retook its 50-day line on Wednesday as it continues to craft a new base. Shares of ORCL are up again today.
Nvidia established a new all-time high, closing at the very top of the day’s price range in above-average and rising volume. While coming off its initial highs early Thursday, Nvidia has just surpassed Apple (AAPL) in terms of market capitalization. Now the AI juggernaut is taking aim at Microsoft (MSFT).
Follow Matthew Galgani on Twitter at @IBD_MGalgani.
YOU MAY ALSO LIKE:
Nvidia, Cava, Arm Form Cadre Of 21 ‘Perfect’ Stocks
Nvidia Dethroned: This AI Chip Stock Now Rules This Elite Screen
Stock Picks: Google, Nvidia Reveal 7 Telltale Traits To Monitor
Generate New Stock Ideas With IBD Stock Screener
Identify Bases And Buy Points With This Pattern Recognition Tool
Jessica Roberts is a seasoned business writer who deciphers the intricacies of the corporate world. With a focus on finance and entrepreneurship, she provides readers with valuable insights into market trends, startup innovations, and economic developments.
