Palantir Is Launching New AI OS Reference Architecture with Nvidia. Should You Buy PLTR Stock?

Although Palantir's (PLTR) new partnership with Nvidia (NVDA) could move the needle positively for PLTR, the company appears to be facing increased competition and still trades at extremely high valuations. Additionally, the evolution of artificial intelligence (AI) could hurt the company's business, and evidence suggests that the Street remains somewhat skeptical about software stocks. Also noteworthy is that the company's co-founder and chairman, Peter Thiel, recently indicated that he planned to unload a large amount of PLTR stock.

Since all of PLTR's weaknesses and negative catalysts far outweigh its deal with Nvidia, I do not recommend that investors purchase PLTR stock at this point.