Is Palantir a Buy, Sell, or Hold in 2026?

The Motley Fool
by newsfeedback@fool.com (Geoffrey Seiler)
February 22, 2026
AI-Generated Deep Dive Summary
The article explores whether Palantir Technologies (NASDAQ: PLTR) is a buy, sell, or hold in 2026, amid a brutal SaaS sell-off that has seen its stock drop nearly 20% this year. Despite the challenges, Palantir remains a key player in the AI landscape, offering a platform that enhances large language models (LLMs) for business applications by organizing data into structured formats. This unique position makes it a critical component of AI infrastructure, helping reduce errors and improve decision-making across industries. Palantir's technology acts as an AI orchestration layer, gathering and structuring data from various sources to link it with real-world assets and processes. By doing so, it minimizes AI hallucinations—common issues where LLMs generate incorrect or nonsensical information—and enables third-party models to solve complex problems more effectively. This capability positions Palantir as an essential tool for businesses looking to integrate AI into their operations. The article highlights the broader context of the SaaS sector's struggles, with even once-hot stocks like Palantir facing significant declines. However, its role in AI and data orchestration suggests long-term potential. While short-term volatility has impacted its stock price, Palantir's ability to serve mission-critical applications for government agencies and large enterprises underscores its resilience. Investors evaluating Palantir must consider the evolving nature of AI adoption and the broader market trends affecting SaaS stocks. The article acknowledges the risks but also points to opportunities in Palantir's unique position as an AI infrastructure provider. Its ability to adapt to changing AI demands and maintain strong client relationships could determine its future trajectory. For finance professionals, this analysis matters as it balances the potential rewards of investing in a key AI player against
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Originally published on The Motley Fool on 2/22/2026