Stock market bulls are digging in their heels to start this week, and technology stocks are back in the driver’s seat. Among them, Palantir (Nasdaq: PLTR | PLTR Price Prediction), Micron Technology (Nasdaq: MU) and Advanced Micro Devices AMD (Nasdaq: AMD) are out front, soaring between 5%-8% each. With the rally, Palantir has shot back above the $190 level, giving investors something to cheer on the heels of this year’s seemingly short-lived but dramatic AI downturn in which fears of a bubble resurfaced.
Among the catalysts driving these stocks higher is relief out of Washington, D.C. now that Congress has finally agreed to end the historic shutdown. But the two key catalysts that are behind the rally are earnings tailwinds and recouping lost ground. We would be remiss not to mention the technology bout that gripped the markets last week, one in which AI leaders suffered their worst slump since early Q2 2025. With earnings coming in hot and the end of the year in sight, tech stocks are looking to capture lost ground as well as their dignity, but the clock is ticking. Let’s explore in further detail the two top reasons why Palantir, Micron and AMD are soaring today.
Palantir Technologies
Palantir has been faced with a one-two punch of the government shutdown and the recent AI downturn in which tech stocks shaved off a whopping $800 billion or so in market capitalization last week. Now that the dust has begun to settle on both fronts, Palantir stock is rallying approximately 8% today to above the psychologically sensitive $190 per share level. During last week’s AI stock sell-off, Palantir stock took the brunt of the selling, dipping as low as $168 per share from the $200 level where it previously hovered. Now it is on the comeback trail, validating investors who bought the dip.
Palantir is coming off of a strong Q3 earnings report in which the company surpassed estimates on both the top and bottom lines and lifted its full-year outlook. The company has seen impressive growth on the commercial side while AI platform adoption is rising. Investors have been waiting to reward the stock alongside Wall Street analysts.
Several analysts unleashed bullish reports on PLTR stock, including Bank of America, which in addition to maintaining a “buy” rating lifted its price target to $255 per share, reflecting upside potential of approximately 34% and suggestion there’s more runway for gains.
Micron Technology
Micron Technology is also riding the earnings tide, having just reported better-than-expected quarterly results. Performance was driven by strong demand for its AI memory chips, causing Micron to lift its outlook while sending the stock soaring 6.3% higher today. During last week’s AI stock sell-off, Micron stock fell as low as $217 per share before today’s rally thrust the stock back above the $250 per share level. Micron stock has momentum on its side as it continues to chase fresh all-time highs.
In response, analyst firm Weiss lifted its rating on MU stock from “hold” to “buy,” citing demand for its AI memory chips as well as partnerships with the likes of Nvidia (Nasdaq: NVDA) and AMD. Not to be outdone, several analyst firms raised their price target on MU stock, led by Citigroup, which has placed a $275 per share price target on the stock amid an AI capex-related boom, suggesting there’s 9% upside potential in this stock.
AMD
Last but not least, Advanced Micro Devices stock is tacking on about 5% today. During last week’s AI-related stock sell-off, AMD stock was not left unscathed, falling as low as $224 per share. Today’s buying has buoyed AMD stock back above the $240 per share threshold.
The AI-powered rally is a welcome sign after the company’s mixed quarterly earnings report, which left investors underwhelmed, particularly on AMD’s gross margin outlook for fiscal Q4. SEC filings suggestion Amazon (Nasdaq: AMZN) had unloaded its stake in industry peer AMD’s stock didn’t help matters. But now AMD is rallying. Wall Street firm Piper Sandler issued a bullish report, lifting its price target on the stock to $280 from $240 with an “overweight” rating attached.
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