Big Tech Bounce Fails as Palantir PLTR and AMD Stock Plunge 8%
AMD and Palantir stock started the week bullish, but reversed down and posted some major losses, with most tech stocks also suffering.
Tech Stocks Struggle Amid AI Selloff
The stock market wrapped up another volatile week, with artificial intelligence and technology stocks leading the downturn. After starting the week on a positive note, investor sentiment quickly soured midweek, culminating in a steep selloff on Friday. The Nasdaq dropped over 3% in a single session and finished the week nearly 9% lower, marking one of its worst weekly declines in months.
Big tech stocks have struggled to maintain momentum throughout 2025, with companies like Palantir, Google, and AMD facing sharp losses in the latter half of the week. The fading enthusiasm for AI-related stocks has further weighed on market sentiment, leading to renewed bearish pressure.
Palantir (PLTR) Sees Wild Swings, Ends Week 8% Down
Palantir’s stock has been particularly volatile this year, continuing its erratic trend throughout the week. After gaining about 5% in early trading sessions, the stock quickly reversed course, closing the week down approximately 8% at $85.07.
In January and early February, PLTR shares surged 60% to a peak of $125 before crashing 40% to $75 following Donald Trump’s announcement of an 8% reduction in the Pentagon’s budget. Given that Palantir relies heavily on government contracts, the proposed budget cuts raised investor concerns about reduced federal spending.
Earlier this month, the stock attempted a rebound off the 20-week SMA (gray), but that recovery has now stalled. If sellers push below the 20-week SMA again, it could open the door for further declines.
AMD (Advanced Micro Devices) Faces Heavy Selling Pressure
While many tech stocks rallied through much of last year, AMD has been feeling the impact of the AI bubble bursting for over a year now. After reaching a high of $227 in March 2024, the stock has lost more than 50% of its value.
AMD attempted to stage a recovery earlier this month, but buyers failed to push the stock above the critical 100-week SMA (red). The selling pressure intensified midweek, with AMD falling 5% on Wednesday. By Friday, the losses accelerated, pushing the stock down to $102.68 per share—marking a 7% weekly decline.
Sellers now face a key test at the 200-week SMA (purple). A breakdown below this level could signal further downside ahead.
Outlook: Will Tech Stocks Rebound?
The overall trend for AI and tech stocks remains bearish, and investor sentiment is fragile. The sharp drop in Palantir and AMD stock highlights the growing uncertainty in the sector. While a relief rally could materialize if market conditions stabilize, the broader weakness in AI stocks suggests that further downside risks remain.
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