Why Palantir stock led the S&P 500 higher today

Shares of data analytics software company Palantir Technologies (PLTR) were the biggest gainers in the S&P 500 on Tuesday after asset manager Ark Invest highlighted software as an area with more room to benefit from artificial intelligence (AI) trends.

In an interview with CNBC, Rahul Bhushan, managing director of Ark Invest Europe, said that data analytics and software firms like Palantir could be poised to take market share from mega-cap tech companies like Microsoft (MSFT), Amazon (AMZN), and the Alphabet (GOOGLE), whose cloud computing platforms have been a focal point in the emerging AI boom.

More “Asymmetric Opportunities” in software

According to Bhushan, hardware and infrastructure accounted for 80% of the value built up over the past two-and-a-half years as investors poured money into stocks of AI-related companies. Ark Invest “finds a lot more asymmetric opportunities today” in companies operating further down the “AI stack” — including those that provide software-as-a-service and platform-as-a-service products — Bhushan said.

Data analytics providers like Palantir can offer customized data and AI services that are tailored to the needs of specific customers, Bhushan said.

Palantir shares rose more than 6% on Tuesday, leaving them up about 140% in 2024.

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