Palantir Teasing Early Breakout WIth Nvidia Inching New Highs

As we saw Nvidia making a new highs on Wednesday (05 June) and making a modest 1.18% dip yesterday (06 June 2024), Palantir stock is targeting a breakout past a trendline entry.

There were over $366 million worth of shares in Palantir being taken up by Wall Street top performing funds. Palantir has continuously eight quarter of rising fund ownership. Nvidia on the other hand, cames back to the list of new buys by best mutual funds.

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.

Palantir offers their services 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.

In May 2024, 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.

While continuing to work on consolidation with a 27.50 buy point, Palantir stock is now teasing 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 06 May. The early entry would emerge if shares of Palantir can move past that trendline around 24.

On Wednesday (05 June), we saw Palantir showing rebounding strength by jumping back above the 50-day moving average. Then on Thursday (06 June), we saw Palantir rose over 3% to close just a little less than the early breakout at 23.80.

With the stock price very near the early breakout of $23.80, I have confidence that Palantir would clear the $24 this week and we might see some breakout level next week.

Appreciate if you could share your thoughts in the comment section whether you think Palantir would continue to clear breakout level and eventually to 27.50.

Disclaimer: The analysis and result presented does not recommend or suggest any investing in the said stock. This is purely for Analysis.