Palantir stock climbs as Nvidia partnership boosts AI growth outlook

Shares of Palantir Technologies PLTR rose on Monday as investors welcomed a new artificial intelligence partnership with Nvidia (NVDA), extending the stock's recovery after it snapped a seven-day losing streak last week.

Palantir stock advanced more than 3% to $116.45 after gaining 5.3% on Friday.

The rebound follows a difficult month for the software company, with shares down 25% in June and on track for their weakest monthly performance in five years.

The latest gains came after Palantir announced a new strategic initiative with Nvidia to build custom artificial intelligence models for the US government using the Nvidia AI ecosystem and Nvidia Nemotron AI models.

Palantir deepens AI partnership with Nvidia

Under the partnership, Nvidia's AI platform and Palantir's critical infrastructure products will be integrated to provide US government agencies with a secure "intelligent engine" for training and deploying AI models.

The platform is designed for government agencies and critical US infrastructure operators that require secure, mission-critical AI deployments while maintaining operational control over sensitive data.

According to Palantir, the platform includes explicit data authorization, secure perimeter enforcement, customer-specific isolation, data portability, the right to erase data and full auditability.

The company said these capabilities are intended to help organizations meet stringent regulatory and security requirements.

"Combining Palantir infrastructure with Nvidia's AI and Nemotron models will allow the US government to unleash the full power of LLMs while removing the underlying security risks and rational concerns around proprietary insights migrating into the weights of closed models," Palantir CEO Karp said.

The announcement marks another collaboration between the two companies and comes after a sharp pullback in Palantir's share price during June.

Surf Air partnership expands commercial AI push

Separately, Palantir and Surf Air Mobility (SRFM) announced an expansion of their commercial partnership to accelerate the rollout of SurfOS.

The companies said they are adding engineering and go-to-market resources to speed deployment of OperatorOS, OwnerOS and SurfOS Enterprise Solutions.

The expanded partnership follows the commercial launch of BrokerOS and Surf Air Mobility's recent multi-million-dollar Enterprise BrokerOS agreement with Wheels Up.

Powered by Palantir's Artificial Intelligence Platform (AIP) and Foundry, SurfOS is designed to modernize private aviation by helping operators, brokers, owners and manufacturers improve efficiency while lowering costs.

According to the companies, the expanded collaboration will accelerate product development, including deployment of AIP agents, while positioning SurfOS as a central operating system for the private aviation and air mobility industry.

Technical picture remains under pressure

Despite Monday's rally, Palantir shares remain well below several important technical levels after a prolonged selloff.

The stock has fallen 30% in 2026 amid broader concerns that advances in artificial intelligence could disrupt software companies.

During its seven-day losing streak between June 16 and June 25, the shares broke below multiple technical support levels and slipped beneath both their 50-day and 200-day moving averages.

Palantir's 50-day moving average stands near $136, while its 200-day moving average is around $158.6.

The February "death cross," when the 50-day moving average fell below the 200-day moving average, continues to weigh on the technical outlook.

Momentum indicators also remain subdued, with the Moving Average Convergence Divergence (MACD) indicator below its signal line and the histogram remaining negative.

Even so, Monday's gains suggest investors are responding positively to Palantir's expanding AI initiatives.

The Nvidia partnership, coupled with the broader commercial expansion with Surf Air Mobility, provides fresh catalysts as the company seeks to regain momentum after one of its sharpest monthly declines in recent years.