Palantir Stock Plunges—Is This the Perfect Buying Opportunity?

Palantir Technologies (NYSE: PLTR) is facing a rough patch as its stock dropped nearly 40% from its record high of $124.62 in February to $76.38 on Monday. The sharp decline comes amid growing concerns over new U.S. tariff policies, which have sent shockwaves through the broader tech sector.

Why Is Palantir’s Stock Falling?

The market sell-off was triggered by President Donald Trump’s recent tariff announcements, which investors fear could disrupt trade and slow down economic growth. The uncertainty caused the Dow Jones to tumble over 400 points, with major tech players like Palantir, Nvidia, and Broadcom taking significant hits.

Analysts See a Buying Opportunity

Despite the stock’s steep decline, top analysts remain optimistic about Palantir’s long-term potential.

• Wedbush analyst Dan Ives believes the recent sell-off has created an opportunity for investors looking to gain exposure to AI-driven stocks like Palantir. He argues that AI spending is only set to increase, and Palantir remains well-positioned to benefit from this trend.
• UBS analysts compare the current slump to a similar tech downturn in 2018, emphasizing that despite short-term volatility, the fundamentals of AI remain strong. They advise investors to see this dip as a chance to buy into high-quality AI stocks at a discount.

Key Support Levels and Investor Activity

Technical analysts are closely watching Palantir’s price movements, noting important support levels at $66, $44, and potentially $30 if the sell-off deepens. On the upside, resistance levels to watch include $85 and $121, where the stock could see a recovery.

Meanwhile, Cathie Wood’s Ark Invest has been actively buying into the dip, adding 152,253 shares of Palantir to its portfolio. This move signals confidence that the stock will bounce back in the long run.

What’s Next for Palantir?

While the recent tariff-related volatility has shaken investor confidence, many analysts believe Palantir’s strong AI positioning will drive long-term growth. With continued expansion in government contracts, AI software, and data analytics, the company remains a key player in the future of AI technology.

For investors with a long-term mindset, this market turbulence may present an opportunity to enter at a lower price before Palantir potentially regains momentum.