AMD or Palantir (PLTR) — Which AI Stock Looks Better After the Recent Tech Sell-Off?

Tech stocks faced significant pressure as investors retreated from artificial intelligence and high-growth sectors amid valuation concerns. The sell-off, driven by fears of slowing momentum, impacted major tech names broadly. Nvidia’s upcoming Q3 FY26 earnings could serve as a critical catalyst for the AI chip sector, offering insights into demand trends and industry spending.

Advanced Micro Devices (AMD) and Palantir (PLTR) emerged as focal points during the downturn. AMD shares fell 2.6% on Monday, extending losses to 1.05% over two days, yet the stock remains up 99% year-to-date. The company’s AI GPU demand, strong Q3 performance, and strategic partnerships—including collaborations with OpenAI and Oracle—have bolstered its position. Analysts remain divided on its near-term trajectory.

Palantir’s outlook is similarly contested. The data analytics firm, known for its government and enterprise AI solutions, has seen volatile trading amid shifting sentiment toward growth stocks. Market participants are weighing its long-term potential against near-term headwinds in the tech sector.