• Despite initially seeing a big sell-off on first-quarter GDP data, Palantir Technologies stock managed to climb 2% today.

• The company's stock price rebounded as new signs indicate that the U.S. has been negotiating tariffs with China.

• The valuation of Palantir's extremely growth-dependent growth is too risky for most investors, but the company has played a leading role in the artificial intelligence (AI) revolution.

Palantir Technology (NASDAQ: PLTR) Despite the high valuation, the stock ended in green trading on Wednesday. The company's shares climbed 2% in trading on the day, but fell 4.8% earlier in the meeting.

Palantir, along with the broader market, sold out today’s deals as investors reacted to the U.S. Department of Commerce’s first-quarter GDP. Despite the 0.4% increase in economists' forecasts, GDP was unexpectedly 0.3% per year during this period.

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The decline in GDP stems from a substantial increase in imports ahead of the new tariffs imposed by the Trump administration, which should be a one-time event, but investors also reacted negatively to growth of 1.8%, well below the 4% increase in the previous quarter.

But a large number of early sell-offs in the market have been removed at the end of the day due to social media posts related to state-owned China channels, which said U.S. officials are in contact with tariff negotiations.

With today's earnings, Palantir shares are now up 56.5% this year.

After continuing valuation in 2025, Palantir is now trading at about 214 times expected earnings this year and expected sales of 74 times. At these incredibly high valuation multiples, stocks look almost untouchable to investors without a high risk tolerance.

Palantir’s Bull case is basically dependent on the company’s role in establishing a fundamental level in the AI ​​(AI) software revolution – and it is still in an early stage of benefiting from strong competitive advantages, prioritizing strategic positioning and secular needs. To its credit, the company absolutely knocked it out of the park - the AI ​​software approach seems to make the business hopeful that it will continue to win.