Palantir's Q2 Beat Buoys AI-Themed ETFs: Is This The Next Nvidia Moment?

Author: Chandrima Sanyal | August 05, 2025 01:28pm

Palantir Technologies (NASDAQ:PLTR) just launched a powerful earnings missile, and AI-named ETFs are enjoying the ride. With another quarter of revenue surprises, strong cash flows, and surging commercial demand, the AI company has emerged as an high-voltage ETF player.

• Palantir is climbing today. Check its live prices here.

But beneath the schoolyard cheering, a question is simmering louder than ever: Is Palantir the next Nvidia (NASDAQ:NVDA) for AI ETFs, or merely the next momentum trap?

The ETF Exposure: Who’s Got Skin In The Game?

Palantir’s moonshot is already paying off with ETF tailwinds. A bunch of thematic and innovation-themed ETFs are bullish on PLTR, and they’re riding the wave.

Top ETFs Holding Palantir:

• Global X Defense Tech ETF (NYSE:SHLD) — Palantir is the top holding, accounting for more than 8% of the portfolio. The fund is up around 2% on Tuesday.

• Global X Artificial Intelligence & Technology ETF (NASDAQ:AIQ) — Focusing on enterprise AI stocks, this fund also holds Palantir as a high-conviction name. The fund climbed on the positive Palantir earnings on Tuesday before paring the gains and then some more, indicating high volatility.

• YieldMax AI & Tech Portfolio Option Income ETF (NYSE:GPTY) — More diversified, but its PLTR holdings of more than 8% have become more visible after earnings.

Q2 Results: AI Bragging Rights Unlocked

Palantir’s second-quarter revenue reached $1.004 billion, surpassing analyst expectations and marking eight consecutive quarters of top- and bottom-line beats. U.S. revenue grew 68% year-over-year, while U.S. commercial sales rose 93%, surpassing government business for the first time in tone and optimism.

Wall Street took notice. Wedbush analyst Dan Ives raised his price target to $200, describing the commercial growth as “off the charts.” The stock rose almost 6% in pre-market trading and is currently hovering around $160, up ~24% since Ives’ bullish prediction.

AI Hype Vs. ETF Reality Check

On paper, PLTR ticks every ETF wishlist box:

• AI exposure
• Robust earnings
• Blistering commercial growth
• A mountain of cash on hand
• Meme stock kick (Reddit loves it)

But step back, and the valuation is raising blood pressure and eyebrows. Palantir is experiencing 80x sales growth, and although this is a positive sign, analysts caution that August could push momentum stocks to the limit, particularly if rates remain sticky or the macroeconomic environment becomes hawkish.

ETF managers, especially those in the thematic space, may face tough decisions: double down or rebalance? Already, many are teetering on the tightrope between short-term risk and long-term conviction.

Retail + Institutional = Firepower

Retail-driven ETF flows may provide additional momentum, particularly if meme strength is combined with institutional wagers, such as those found in ARK and Global X products.

If retail mania meets enterprise adoption, we might be facing a real ETF-driven feedback loop, not dissimilar from what occurred with Nvidia and semiconductor ETFs this spring.

Conclusion: The AI Use-Case Era Is Upon Us

Palantir is no longer merely a data-nerd contractor with ghostly government connections. It’s becoming a full-fledged enterprise AI platform, with its Foundry and AIP products gaining traction across various industries.

That change is making waves in the ETF space, particularly among funds seeking to position before the next AI growth wave.

Caution, however, is advised. With valuations extended and AI mania at full speed ahead, ETF investors might want to consider whether Palantir is a long-term behemoth or merely this quarter’s goose that lays the golden egg.

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Image: Shutterstock

Posted In: AIQ GPTY NVDA PLTR SHLD