Palantir's growth continues to be led by U.S. commercial customers adopting its Artificial Intelligence Platform (AIP). The company once again credited AIP's ontology, saying it is "pure understanding," and that without it, large language models (LLMs) cannot actually work in the real world

Shares of data analytics powerhouse Palantir Technologies (NASDAQ: PLTR) soared by 141% this year. For two years running, Palantir is the top-performing stock in the S&P 500, and its momentum doesn't appear to be diminishing in the slightest.

The Dow Jones index dropped Thursday after surprise initial jobless claims. Walmart falls as Palantir seeks direction.

The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Palantir Technologies wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.

Keithen Drury has positions in Alphabet, Meta Platforms, and Tesla. The Motley Fool has positions in and recommends Alphabet, Costco Wholesale, Meta Platforms, Palantir Technologies, and Tesla. The Motley Fool has a disclosure policy.

Dow Jones futures fell slightly early Thursday, along with S&P 500 futures and Nasdaq futures. Meta PlatformsMETA reportedly has halted AI hiring. WalmartWMT earnings are due Thursday morning.The stock market had another mixed session,

In recent days, Palantir's stock has been showing signs of slowing down. After hitting a new all-time high of $190 on Aug. 12, it has proceeded to trade lower. By Monday, the AI stock would close at just over $174 -- down 8% from its recent high.

Palantir has had instances where its stock price dropped by double-digit percentages in a day, so it's not that far-fetched -- especially with its current stretched valuation.

Shares of Palantir ($PLTR) dropped over 9% on Tuesday due to a critical report from short-selling firm Citron Research, which cited that PLTR

That unbridled success has translated into meteoric growth and a blistering run for the stock. But this could be just the beginning. CEO Alex Karp just announced plans to grow the company's revenue tenfold while reducing Palantir's head count. Let's review what he said and see what this could mean for the stock price.

The sudden reversal shows how the hottest AI trade and top-performing stock of the year is colliding with a broader market rotation out of Big Tech.