Shares of Palantir Technologies (NASDAQ: PLTR) have shed 20% of their value in 2026 as of this writing, driven mainly by the broader weakness in artificial intelligence (AI) stocks and the company’s expensive valuation.
However, Palantir stock could get a big shot in the arm when the company releases its second-quarter results on Aug. 3
Let’s see why that’s likely to be the case. Software stocks are winning back investor confidence This has been a difficult year for software stocks. The sector has taken a beating amid fears that the advent of agentic AI could upend the traditional software industry.
However, software stocks seem to be gaining popularity among investors once again. The iShares Expanded Tech-Software Sector ETF, an exchange-traded fund that invests in North American software, media, and services companies, has appreciated 9% over the past three months. Even Palantir stock has recovered 26% from the 52-week low it reached on June 25.