AI Stocks Are Rallying After The Bell: What's Going On?

Several AI-linked stocks are trading higher in Monday’s after-hours session following Palantir Technologies Inc PLTR shares rocketing higher on based on blowout earnings. Here’s what you need to know.

What Happened With PLTR: Palantir beat analyst estimates on the top and bottom lines, reporting fourth-quarter revenue of $827.52 million and earnings of 14 cents per share.

Total revenue grew 36% year-over-year driven by strong growth in the U.S. of 52%. U.S. Commercial revenue jumped 64% year-over-year and U.S. Government revenue increased 45% year-over-year.

Palantir's customer count grew 43% year-over-year. The company delivered $517 million in adjusted free cash flow and ended the quarter with $5.2 billion of cash, equivalents and short-term U.S. treasury securities.

"We are still in the earliest stages, the beginning of the first act, of a revolution that will play out over years and decades," Palantir CEO Alex Karp said in a letter to shareholders. 

"This is not an incremental advance or marginal acceleration of our business. This is a new phase. And the momentum we are seeing across sectors, both commercial and government, is unlike anything that has come before."

Check This Out: Palantir Q4 Earnings: Revenue Beat, EPS Beat, US Revenue Up 52%, Customer Count Up 43%, Strong Guidance

The upside surprise and optimistic commentary from the company appears to be driving other AI-related names higher after the bell.

Tempus AI Inc TEM has seen increased attention in recent weeks after former House Speaker Nancy Pelosi disclosed the purchase of several call options. Tempus AI shares were up more than 7% in extended trading at last check.

Other AI-related names including C3.ai Inc AI, BigBear.ai Holdings Inc BBAI and SoundHound AI Inc SOUN were also moving higher following Palantir’s quarterly report. C3.ai shares were up about 4.5%, BigBear.ai shares were up about 5.5% and SoundHound shares were up about 2%.

NVIDIA Corp NVDA, which has been the biggest beneficiary of the AI boom to date, was also moving higher, last up about 1.35% in after-hours trading. Palantir shares were up more than 22% in after-hours at the time of publication Monday.

Read Next:

• Options Corner: Tempus AI Stock Soars On Nancy Pelosi’s Call Options — But Should Investors Follow?

This illustration was generated using artificial intelligence via Midjourney.