AI Software Retreat: Palantir Drops 5%, SaaS Still Buyable?
While semiconductors and AI chips celebrated, AI software names sold off sharply: Palantir (PLTR) fell 5.28% and ServiceNow dropped 6.04%, with multiple SaaS stocks moving in tandem. Analysts flagged that PLTR's current $369 billion valuation requires an "unprecedented share of the federal market" to justify, reigniting stretched-valuation concerns. The move looks more like a rotation from crowded software back into hardware and semiconductors than any fundamental deterioration. After leading Monday's gains and getting hit today, will you buy the AI software dip — or rotate into semis?