Palantir Technologies (PLTR) fell out of favor with investors in 2026. Shares of the AI-focused software company are down 19.16% year-to-date (YTD), significantly underperforming the S&P 500 Index ($SPX), which has gained 10.54% during the same period. The stock also remains roughly 31.17% below its 52-week high of $207.52.
The pullback marks a notable shift in sentiment toward one of the market's most prominent AI stocks. While Palantir delivered strong gains in recent years as enthusiasm around AI accelerated, investors have become increasingly cautious amid concerns about valuation and intensifying competition.