Palantir shares rebound on upgrade, with investors citing fresh Nvidia-linked AI momentum

Palantir Technologies (PLTR) shares rose again on July 2, continuing a rebound after the stock bottomed around $107.27 last week, according to market reporting cited by Yahoo Finance. The latest move comes as investors look for renewed strength in AI software, a group that has recently traded more tensely alongside fast-moving chip demand and enthusiasm for AI infrastructure.

A key driver in the session was sell-side sentiment. DA Davidson upgraded Palantir to a Buy rating and set an upside view of 39%, a framing referenced in the Yahoo Finance write-up. In market terms, that means the analyst believes the shares have room to rise relative to their then-current level, and the rating shift itself can attract incremental demand from investors following analyst recommendations.

Beyond the upgrade, additional catalysts highlighted by other coverage included the idea that money is rotating back into AI software names. The Globe and Mail reported that Palantir’s rally has been partly driven by investors moving capital toward software companies tied to AI, after earlier pressure in parts of the software complex.

The same report also pointed to a new partnership with Nvidia. The Globe and Mail said Palantir announced a partnership with Nvidia to deliver new AI models for government customers, suggesting that Palantir’s near-term narrative remains closely linked to how AI workloads are deployed for public-sector use cases.

Separate from business developments, the Globe and Mail also attributed part of the momentum to a positioning shift by Michael Burry, noting that news that Burry had cut his short bet against Palantir was among the factors investors were reacting to. That kind of development tends to be market-sensitive because it can change expectations for near-term selling pressure.

Where Nvidia fits into the picture is less about any immediate change at the chipmaker and more about the ecosystem Palantir is trying to sell into. In this framing, a Nvidia-linked AI partnership can matter to Palantir because it supports the company’s messaging that it can help customers build and deploy AI systems, including in regulated environments like government.

It is also important to note what is not in the public record from the cited items. The reporting referenced above does not provide the full technical scope of the “new AI models” mentioned for government customers, nor does it quantify any expected financial impact from the partnership. As a result, the market reaction captured in these stories appears to reflect sentiment and perceived strategic relevance rather than a disclosed revenue forecast tied to the Nvidia work.

Looking ahead, traders will likely watch whether the optimism from the upgrade and the Nvidia partnership narrative shows up in upcoming disclosures from Palantir, including any updates on product rollouts for government customers and additional detail on how its AI deployments are moving from pilots to production. The stock’s direction may also remain sensitive to broader rotation between AI software and AI infrastructure themes, as indicated by the commentary on investor flows.