Palantir (PLTR) Stock Skyrockets: ETF Betting Big on AI’s Fastest Rising Star
Palantir Technologies Inc. (NASDAQ: PLTR) has once again captured Wall Street’s attention with an explosive 22% surge following a stellar quarterly earnings report. The AI-driven data analytics company continues to defy market expectations, pushing its valuation to an astonishing $230 billion and marking an impressive 35% gain in 2025 alone.
Despite its meteoric rise, investors and analysts alike are questioning whether Palantir’s current valuation is justified or if the stock remains poised for further upside. While valuation concerns linger, institutional investors, including exchange-traded funds (ETFs), have been steadily increasing their exposure to Palantir, signaling confidence in the firm’s long-term potential. Here’s a look at three ETFs that have been strategically accumulating PLTR shares, making them worth watching for AI-focused investors.
1. ARK Innovation ETF (ARKK)
Led by renowned investor Cathie Wood, the ARK Innovation ETF (ARKK) has been a longtime believer in Palantir’s potential. This actively managed fund focuses on disruptive innovation and AI-driven technologies, making PLTR a natural fit for its portfolio. ARKK has significantly increased its stake in Palantir over the past year, reflecting strong conviction in the company’s growth trajectory.
Given Palantir’s continued expansion into government contracts and enterprise AI solutions, ARKK’s aggressive investment strategy aligns well with the firm’s high-growth outlook. As AI adoption accelerates, ARK Innovation ETF’s bet on Palantir could pay off handsomely.
2. iShares U.S. Technology ETF (IYW)
The iShares U.S. Technology ETF (IYW) is another major player with a growing stake in Palantir. This passively managed fund tracks the performance of large-cap U.S. technology stocks, making it a key investment vehicle for those seeking broad exposure to the tech sector.
With Palantir now firmly positioned as an AI leader, IYW’s increased allocation reflects a recognition of the company’s potential to disrupt industries ranging from cybersecurity to healthcare. The ETF’s diversified approach provides investors with exposure to Palantir alongside other tech giants, offering a balanced AI investment strategy.
3. Vanguard Information Technology ETF (VGT)
Vanguard Information Technology ETF (VGT), one of the largest and most well-regarded tech-focused ETFs, has also been steadily adding Palantir to its portfolio. As a fund that primarily invests in blue-chip tech stocks, its inclusion of PLTR underscores the growing mainstream acceptance of the company’s business model and long-term growth potential.
VGT’s investment strategy focuses on established tech firms with strong fundamentals, making Palantir’s presence in its holdings a testament to the AI company’s evolution from a speculative growth stock to a legitimate industry contender.
Why ETF Are Betting on Palantir
The rapid expansion of AI technologies and data-driven decision-making has positioned Palantir as a key player in this transformative space. These ETFs, among others, have recognized the firm’s potential and are steadily increasing their stakes, providing investors with diversified exposure to the booming AI sector. As the race for AI supremacy intensifies, Palantir remains a stock to watch, and these ETFs could offer a strategic way to participate in its growth story.
