Palantir is once again the top stock in the S&P 500

A nearly 30% surge in Palantir shares this month has pushed the defense data and AI software company back into contention for the top of the S&P 500 — again.

The company, which was cofounded by Peter Thiel, was the top performer in the blue-chip index last year with a 340% gain. It was added to the S&P 500 in September 2024, and then exploded in price as part of the Trump stock rally that followed the November election.

This year has been much choppier, with the company up as much as 65% for the year through mid-February before losing all those gains in less than a month. The administration’s goal for deep cuts to defense spending and the federal bureaucracy seemed to spark a mini panic around the shares, as the US government is Palantir’s largest single customer.

But Palantir began to bounce as President Trump backed off on tariffs — it jumped 19% on the April 9 “pause” — and soon after announced a fresh defense deal with NATO.

Through Friday’s close, Palantir was up 49%, putting it ahead of CVS Health — which has sat atop the index for most of the year with its nearly 46% rise. And shortly before 12 p.m. ET, Palantir was still holding pole position in S&P 500, despite a slump in tech.

Palantir reports earnings on May 7 after the close of trading, and expectations are quite high, with analysts predicting sales growth of 36% year over year.