Technology Shares Slip as AI Optimism Falters; Palantir Receives $463M Contract while Nvidia Falls, Apple

Tech stocks slip as AI optimism wavers, Palantir receives $463M contract from US Special Operations Command. Nvidia falls but nears $1T market cap, Apple shares slip after launching Vision

Technology Shares Slip as AI Optimism Falters; Palantir Receives $463M Contract while Nvidia Falls, Apple

Technology stocks stumbled today as investors’ optimism over a new wave of artificial-intelligence technology waned. Palantir Technologies, an AI consulting firm, received a $463 million contract from the U.S. Special Operations Command, which helped its shares rise initially. However, Palantir’s gains were short-lived, and other AI favorites like Nvidia saw their stock prices fall. Despite this setback, Nvidia is on the verge of becoming one of the few corporations to breach a $1 trillion market capitalization thanks to its high-powered computer chips. Meanwhile, Apple’s stock slipped after reaching all-time highs when it launched its highly anticipated augmented-reality headset called VisionPro. The iPhone maker described the new product as a spatial computer due to its three-dimensional interface.

Tesla’s momentum continued today as its shares rose for the seventh straight day. The electric-car maker has now more than doubled in value for 2023 so far, making it one of the best-performing stocks this year. While other technology stocks faltered today, Tesla remained strong and showed no signs of slowing down anytime soon. As investors remain bullish on electric vehicles and renewable energy sources, Tesla is poised to reap the benefits of this growing trend. For more news on technology stocks and market trends, contact Rob Curran at rob.curran@dowjones.com(END).