Palantir Stock Slumps Over 9% As AI Stocks Like NVIDIA And Meta Cool Off

Core Insights - Palantir's stock has dropped 9% on Tuesday, marking its fifth consecutive day of losses, and is down 15.5% since August 13 [1][2] - The decline is attributed to a short report from Citron Research, which claims Palantir's stock is overvalued compared to OpenAI's valuation [2] - Despite the recent slump, Palantir's shares have increased by 110% since the beginning of the year, driven by strong performance in AI tools and a significant $10 billion deal with the Army [6] Financial Performance - Palantir reported quarterly revenue of $1 billion, surpassing the milestone for the first time [5] - The company has raised its full-year revenue guidance to between $4.14 billion and $4.15 billion, up from previous expectations of $3.89 billion to $3.90 billion [6] Market Context - Other tech stocks, including NVIDIA and Meta, have also experienced declines, with NVIDIA shares slipping 3% and Meta falling nearly 2% [3] - The Nasdaq index fell 1.4% during midday trading, indicating a broader market trend affecting tech stocks [3] Industry Trends - The AI sector is experiencing volatility, with OpenAI's CEO suggesting that investors may be overexcited about AI, despite its significance [6] - The Trump administration's push for enhanced AI and chip infrastructure in the U.S. has led to increased financial commitments from major companies [7]