Palantir Is the Most Oversold Tech Stock Now. A Rebound Isn’t a Guarantee.

There was a time not so long ago when Palantir (PLTR) and its stock could do no wrong. Palantir became a favorite among retail investors, sporting an unmatched platform, led by a mercurial CEO who spoke his mind, and armed with a mission of saving governments from bad actors.

However, 2026 could not be any different for Palantir. Shares of PLTR stock are down more than 34% on a year-to-date (YTD) basis, taking its market capitalization below $300 billion. In fact, the correction has been so acute that Palantir emerged as the most oversold mega-cap tech stock with a Relative Strength Index (RSI) of 27 at one point. RSI is a momentum indicator that measures the speed and magnitude of recent price changes (generally 14 days) in a stock, helping traders assess whether an equity may be overbought or oversold. If the RSI ranges between 0 and 30, the stock is considered to be oversold, while if it is above 70, it is considered overbought.