What's Going On With Palantir Stock Wednesday?

Palantir Technologies Inc. PLTR shares moved higher on Wednesday as the software sector rebounded from weakness earlier this week.

What To Know: On Monday, stocks across the software sector and broader market fell amid recession concerns due to uncertainty over tariffs and trade policy. Earlier this month, U.S. President Donald Trump implemented a 25% tariff on imports from Canada and Mexico, and raised tariffs on Chinese goods from 10% to 20%, according to ABC.

Trump later created an exception for USMCA-compliant goods, at least until April. The back-and-forth tariff news appears to have spooked investors about the future stability of pricing and supply chains.

Trump also appeared to acknowledge the possibility of a recession in 2025 earlier this week, warning that there will be a "period of transition" as his administration makes significant changes.

The sector bounced back on Wednesday, potentially driven by reports that Taiwan Semiconductor Manufacturing Company Ltd. TSM proposed a joint venture to Nvidia, AMD, Qualcomm and Broadcom, in which the venture would manage Intel’s factories.

According to the proposal, TSM would oversee Intel’s foundry division, which customizes chips for customers, but the company would not own more than a 50% stake in the venture. The Trump administration reportedly requested that TSM assist in strengthening Intel.

The news may be contributing to the rebound in stocks on Wednesday as investors may view the initiative as a way to enhance chip production efficiency and alleviate supply chain challenges. For software companies, such could improve the availability and performance of the hardware they rely on, benefiting companies like Palantir.

See Also: Apple Stock Takes A Bite Out Of Investors As Siri Fumbles AI Race

PLTR Price Action: Palantir shares closed Wednesday up 7.17% at $83.65, according to data from Benzinga Pro.

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