Technology stocks might struggle to recover from a 2% drop on Tuesday. Throughout the last year, momentum investors did not question the valuation of Palantir Technologies (PLTR).
That changed.
In the third quarter, Palantir posted a 21-cent non-GAAP EPS. Revenue jumped by 62.6% to 41.18 billion. Shorts are not betting against the firm. The short interest is 2.15%. However, famed short-seller Michael Burry bought puts against Nvidia (NVDA) and Palantir. This trade to bet that the AI suppliers are in a bubble has high risks.
Puts might expire worthless if those companies rally back. Since 2022, shares in those firms have benefited from highly bullish momentum.
After markets closed, Advanced Micro Devices (AMD) reported Q3/2025 results. Revenue of $9.25 billion is up by 35.6% Y/Y. Non-GAAP EPS was $1.20. In addition to the strong results, the firm is forecasting Q4 sales of between $9.3 billion and $9.9 billion. The outlook excludes MI308 server shipments to China.
Risk
AMD announced a driver software update for gaming GPUs that sunset active support for the 5000 and 6000 series chips. This might indirectly hurt the adoption of AMD’s GPU in the AI market. AI developers prefer Nvidia’s platform, since CUDA is well established.
Your Takeaway
Neither AMD nor Palantir is big enough to hurt stocks rising from the AI boom. However, if fear spreads to more names, markets might look at AI stocks as a bubble. It already panicked with Meta Platforms (META). META stock dropped by nearly 19% in the last quarter.
