Is Palantir Sell-Off Over?

Last Wednesday, August 20, was the day that the potential rebound in Palantir (PLTR) took place. The stock looked like it would fall below $140. Fortunately, stock markets staged a strong relief rally last Friday.Optimism rose after Fed Chair Powell spoke at the Jackson Symposium. The rally lifted the Magnificent Seven firms, including Tesla (TSLA), Alphabet (GOOG), and Amazon (AMZN). After Palantir shares pulled back a few days ago, is the sell-off over?Palantir’s excessive valuations are a near-term risk. Its uptrend toward $200 depends on Nasdaq (QQQ) continuing its rise. To justify the index’s high P/E, investors need the central bank to cut rates more than once this year.Strong GrowthPalantir demonstrated its ability to maximize growth in artificial intelligence. In the last quarter, government revenue grew by 53%. Expect its oldest customer, the U.S. Army, to continue to reward Palantir with multi-billion-dollar contracts. It needs the data and software to achieve efficiencies and to support growth in the military.Global conflicts show no signs of slowing down. This will require the U.S. government to continue increasing its spending on products that Palantir offers.Investors may consider other tech firms that trade at a lower P/E in the 20 times to 40 times range. This includes Nvidia (NVDA), Microsoft (MSFT), Broadcom (AVGO), AMD (AMD), and IBM (IBM).