AI Superstar Palantir Has Plunged 37% From Its All-Time High -- and a Minimum Decline of 60% Should Be Expected, Based on What History Says

Core Insights - The artificial intelligence (AI) sector has become a major focus for investors, representing a multitrillion-dollar global opportunity that can benefit both humanity and corporate America [1] Company Overview - Palantir Technologies has emerged as a leading player in the AI application space, with its stock surging over 1,900% since the start of 2023, adding more than $300 billion in market value [2] - Despite its significant growth, Palantir's stock has experienced a decline of 37% since reaching an all-time high in early November [5] Competitive Advantage - Palantir possesses a sustainable competitive edge, which has significantly boosted its valuation [6] - The company operates two main AI-driven software-as-a-service (SaaS) platforms: Gotham and Foundry, which are unique in their offerings and face little large-scale competition [7] Product Details - Gotham is Palantir's primary platform, utilized by the U.S. federal government and allies for military operations and intelligence gathering, making it crucial for national defense [8] - Foundry, aimed at commercial businesses, helps organizations manage large data flows and improve efficiency, with 780 commercial customers as of 2025, reflecting a 37% year-over-year growth [9]