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 (NASDAQ: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 (NASDAQ: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 (NYSE:AI), BigBear.ai Holdings Inc (NYSE:BBAI) and SoundHound AI Inc (NASDAQ: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 (NASDAQ: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.