Palantir Valuation Reality Check: 40% Price Drop since AI Darling Peak

Palantir Technologies, once hailed as an AI darling in 2025, has seen its stock price plummet by over 40% since reaching an all-time high of $207.52 on November 3, 2025.

The company's valuation has taken a hit due to rising interest rates and persistent inflationary pressures, making investors recalculate the present value of future earnings.

Palantir's strong fundamentals, including year-over-year revenue growth exceeding 70% in recent quarters, have not been enough to shield it from the market's downturn.

The company's partnership with Nvidia and its government credentials have reinforced its positioning in the enterprise AI space, but the stock still trades at premium multiples despite a significant haircut.