Shares of Palantir (PLTR) surged last Friday as a broader software rally carried the stock to its best intraday performance in 13 months.
The stock ended the week higher with a double-digit percentage gain. That extended a recent pop that had the stock higher by 13.18% for the month ending May 28. If Palantir’s resurgence has legs — and some market observers believe it does — short-term traders can capitalize with the the Direxion Daily PLTR Bull 2X Shares (PLTU ).
That single-stock ETF is designed to deliver 200% of the daily performance of Palantir shares. It can be a rewarding trade when Palantir is popping. However, investors should use the ETF only over short holding periods.
More Fuel for a Palantir Rally?
Widely discussed this year, artificial intelligence (AI) disruption fears previously drubbed software stocks. The sell-off didn’t spare Palantir.
“Software stocks were battered earlier in the year as investors fretted that AI would take market share from software-as-a-service providers. Even Palantir, an AI-native tech player, wasn’t immune,” reported Mackenzie Tatananni for Barron’s.
With the help of big rallies late last week by Dell (DEL) and Snowflake (SNOW), there’s belief that software stocks are on the mend. That could fan the flames of the Palantir rally, potentially supporting the case for occasional, tactical deployment of the leveraged PLTU.
Wall Street still loves Palantir. Nineteen of the 28 analysts covering rate it the equivalent of a strong buy. Additionally, the consensus price target on the tech name is just below $195. That implies significant upside from the May 29 close.
Some market observers view Palantir as the better AI play than the aforementioned Snowflake. That perhaps adds to the near-term allure of Direxion’s PLTU.
“Palantir appears to have the stronger strategic position in the broader AI ecosystem. Its staggering revenue growth, expanding profitability, rising government and commercial adoption worldwide, and growing role in operational AI make it one of the few software companies that genuinely looks built for the next decade of AI,” reported Barchart.
So if the AI trade continues adding momentum, the same could be true of Palantir. Indeed, it has a reputation as one of the more AI-correlated software names. Again, that could spell opportunity with PLTU.
“For Palantir, the results are an affirmation of the technology at the heart of its business. As one of the most notable beneficiaries of the AI boom, the data-analytics giant saw its shares more than double in 2025, easily eclipsing the Nasdaq’s 20% gain,” according to Barron’s.
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