The S&P 500's best stock this year is fighting back, as it looks set to avoid suffering its worst stretch in 2 1/2-years. Palantir's stock was rallying 1.1% in recen

Palantir (NASDAQ: PLTR) has been one of the top artificial intelligence (AI) stocks to own in 2025. The stock is up an astounding 144% as of the time of writing, and shows no signs of slowing down. Impressive financial results are fueling its stock rise, as Palantir continues to blow expectations out of the water quarter after quarter.

Dow Jones futures were little changed, along with S&P 500 futures and Nasdaq futures, with investors awaiting Fed chief Jerome Powell's Jackson Hole speech Friday morning.The stock market rally fell modestly Thursday amid a WalmartWMT tumble and some pre-Powell caution.

Palantir stock (NASDAQ: PLTR) took a sharp hit on Wednesday, falling about 7% as high-valuation tech stocks pulled back across the market. The AI and data analytics company had hit record highs earlier in the month,

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While the operational momentum is clearly solid, investors should pay closer attention to the risks. History shows Palantir stock can fall hard as sentiment shifts.

Discover how Palantir Technologies Inc.'s commercial growth, blue-chip clients, and enterprise adoption drive long-term success. Click for my PLTR stock update.

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.