Despite a 17% drop from highs, Palantir is still the top-performing stock in the S&P 500 this year.

But the stock has gotten far ahead of the business, and Palantir is now caught up in a broader rotation away from AI-related stocks as valuations soar. While high-growth stocks often warrant higher valuations, Palantir has stood out among them.

Palantir Technologies ($PLTR) stock has come under pressure last week, with shares falling nearly 10% and marking the company’s longest losing