Palantir’s NVIDIA AI Collab Could Be a Game-Changer That Marks a Turn in the Stock

Palantir’s NVIDIA AI Collab Could Be a Game-Changer That Marks a Turn in the Stock Joey Frenette Fri, July 3, 2026 at 9:53 PM GMT+7 4 min read PLTR NVDA Quick Read Palantir shares surged 18% in a week as investors rotate from semis into AI software. A new deal using Nvidia's Nemotron to build government AI models squeezes short sellers and may justify Palantir's 145x trailing P/E multiple. Despite Palantir's 85% revenue growth quarter, Nvidia may offer better value. Don't wait: the analyst who called NVIDIA in 2010 just revealed his top 10 AI stocks. See the full list FREE now. Shares of Palantir (NASDAQ:PLTR) have been bouncing back, now up close to 18% in a week, and it might be a good idea to step out of the way if you're short or are hanging onto bearish put options. Dr. Michael Burry recently announced that he'd covered half of his short position around a week ago, a move that's proved incredibly well-timed. As investors pile back into the AI software plays and away from the semiconductors, I do think that Palantir stands out as a name that might not take all too long before it's at fresh highs again. While Palantir's stock is still wildly expensive, one has to think that CEO Alex Karp is right when he notes that "something has gone completely wrong" when it comes to how AI is being sold today. Indeed, the tokenmaxxing trend and marketing certainly do seem to be casting shadows on the AI revolution in its tracks. Either way, the company's latest partnership with Nvidia (NASDAQ:NVDA) brings together two of the biggest winners from the AI boom. And while both names have fallen a bit out of favor in recent months, I still think that the expanded partnership stands out as a huge win-win, especially as the AI leaders look to guide the world into the next phase of AI. For Dr. Burry, though, it's two of his shorts working together in a way that may or may not cause the man to cover more of his bearish positions. Don't wait: the analyst who called NVIDIA in 2010 just revealed his top 10 AI stocks. See the full list FREE now. As Palantir and Nvidia go after the opportunity to be had in sovereign AI. With Palantir now inking a deal to use Nvidia's Nemotron to build models for the government, it feels like the shorts, like Dr. Burry, have one extra thing to be worried about, as they feel just a bit of a squeeze. Indeed, when it comes to an oversold stock, sudden announcements like this can really cause a bit of anxiety on the part of those who've bet against a stock that's been steadily sinking. As the king of ontology joins with the king of AI compute, perhaps there's every reason for the bulls to justify Palantir's 145 times trailing price-to-earnings (P/E) multiple. After all, investors seemed to ignore that blowout quarter, which could be just the start, as the firm brings more clients aboard while extending collabs with the likes of Nvidia. Until Dr. Burry covers the rest of his Palantir short, I do think that those looking to get back into the Palantir waters might wish to tread cautiously, especially if it turns out that 85% revenue growth quarter is nothing more than an outlier. It will be interesting to see how the deal evolves and whether this represents the blueprint for how non-government firms look to go about building up their five-layer AI cakes with security at the top of mind. Given the rise of AI cyberthreats, count me as unsurprised if this collaboration expands further, possibly in a way that helps both firms get the AI boom going along at full speed. While I do view the partnership as a potential turn in Palantir stock as investors warm up to AI plays beyond semis again, I wouldn't expect the development to kick off a sustained run to the Street-high price target, currently pinned at $230 per share or about 78% above current levels. Either way, I wouldn't want to wager a bet against Alex Karp or Jensen Huang. Don't wait: the analyst who called NVIDIA in 2010 just revealed his top 10 AI stocks. See the full list FREE now. Contact editorial@247wallst.com for any questions or corrections.

Palantir’s NVIDIA AI Collab Could Be a Game-Changer That Marks a Turn in the Stock

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