But Nvidia has been usurped as Wall Street's AI darling by data-mining specialist Palantir Technologies ( PLTR 1.44%). Heading into this week, Palantir was worth $293 billion, and its shares had risen by roughly 1,840% since the start of 2023. It went from being one of many high-growth tech stocks to a foundational piece of the AI revolution.

Two companies showing some of the most promise on this front are Palantir Technologies (NASDAQ: PLTR) and SoundHound AI (NASDAQ: SOUN). While both Palantir and SoundHound are emerging AI software companies,

Bloomberg journalists discuss today's biggest winners and losers in the stock market. Listen for analysis on the companies making news on Wall Street.

Palantir Technologies ( PLTR 1.44%) stock had plunged 14% as of 10 a.m. ET on Tuesday, May 6, as investors reacted to its first-quarter financial results. The company reported solid results amid continued demand for its artificial intelligence (AI) platform, but the market clearly had higher expectations.

Palantir stock has been on a tear in 2025, rising more than 40% even after Tuesday's big drop. Analysts have expressed concerns about the AI firm's valuation.

Palantir raised its full-year outlook on strong demand for its AI software, but shares slipped in extended trading Monday as the company's results failed to impress.