Nvidia Is Soaring - The Big Question Is When Does Palantir's Turn Come?

"It's been a long time coming, and the upward move came as quite a surprise, as it wasn't a blowout quarterly earnings reveal, another new circular deal or partnership, or even upbeat commentary from the great Jensen Huang; it was actually a surprising U.S. approval for Nvidia to sell some more of its older chips, the H200, to China."

"And with explosive momentum spreading across the semiconductor market, perhaps it's not all too big of a surprise to see the $5.45 trillion titan moving on from its fairly lengthy breather. It's hard to tell what the next move for the semis will be and whether the $6 trillion market cap level can be breached as a part of this rally."

"Palantir stock is in a tougher spot. Will it get its turn to turn? But I do think that such a run has Palantir ( NASDAQ:PLTR) investors wondering when Alex Karp's empire will be stepping up to bat. Either way, running to the exits with a former AI high-flyer as it enters a pressured period might not be without its own share of upside risks."

"In any case, Palantir stock was in a far tougher spot than Nvidia, given that the stock has been stuck in a bear market, rather than running sideways in a "sideways correction," to speak. With that much negative momentum and the worry of a Michael Burry bearish bet, you can imagine how tough it can be to maintain conviction in a momentum trade that's starting to look incredibly choppy."

Nvidia shares rose to new highs around $235 before pulling back slightly. The move came without a major earnings beat, new deal, partnership, or upbeat commentary, instead following U.S. approval allowing Nvidia to sell additional older H200 chips to China. Semiconductor momentum spread across the sector, raising questions about whether the $6 trillion market cap level can be reached. Palantir stock faced a tougher environment, stuck in a bear market rather than a sideways correction. Investors are left wondering when Alex Karp’s company will step up, and exiting positions with a former AI high-flyer during a pressured period may carry upside risks. Palantir’s first-quarter results were followed by selling, leaving the stock in its most challenging period to date.

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