Palantir and Palo Alto Networks Gain as AI Hardware Sells Off

Shares of Palantir Technologies Inc. and Palo Alto Networks rose on Monday, September 14, 2026, as investors shifted capital away from semiconductor and AI hardware stocks. This market rotation followed an essay by Anthropic CEO Dario Amodei calling for a slowdown in frontier AI model development, alongside warnings from Elon Musk and Sam Altman regarding the dangers of advanced artificial intelligence.

Palantir shares increased 1.25% to $169.32, supported by its AI sovereignty strategy that allows clients to keep sensitive data independent from major AI labs. The company reported second-quarter revenue of $1.94 billion, representing a 93% year-over-year increase, with U.S. commercial revenue surging 149%. While analysts from DA Davidson and Rosenblatt maintained positive ratings, short-seller Michael Burry warned that the company is riding an "AI FOMO Bubble" and predicted its market capitalization could drop below $100 billion.

Palo Alto Networks saw a more significant jump, with its stock rising 13.6%. The climb was bolstered by security concerns surrounding AI and a series of analyst upgrades. Wedbush upgraded the stock to outperform with a $400 target, while Goldman Sachs and Cantor Fitzgerald raised their targets to $390 and $425, respectively, following a strong fourth-quarter earnings report that exceeded guided metrics.