Palantir Technologies (NASDAQ: PLTR) got off to a red-hot start in 2025 and quickly registered gains of more than 60% in less than two months, hitting a 52-week high on Feb. 18, but it has been retreating rapidly since then.

Planned cuts to defense spending sparked a sell-off for Palantir stock that has continued into this week. Shares have tumbled after touching records.

Palantir (PLTR) has undoubtedly been a shining star of the artificial intelligence (AI) boom, delivering jaw-dropping returns of nearly 955% over the past two years. From powering military operations and supply chains to fighting fraud and enhancing healthcare,