AI Demand Fueling Rally in Technology Stocks: Palantir, Micron, and Reddit Lead the Way

In intraday trading on Monday, technology stocks rallied, with the S&P 500 technology sector up over 1% at 11:45 a.m. ET. The broader S&P 500 also rose 0.6%, and the Nasdaq rose 0.7%.

Shares of Palantir ( PLTR ) were up as the company prepared to release its earnings report later in the day, rising over 6% to $24.74 in intraday trading. Analysts expect Palantir’s earnings to rise year-over-year due to increased demand from government and commercial customers for its artificial intelligence (AI) platform.

Micron Technology ( MU ) saw its shares rise 4.5% to $120 after analysts at Baird upgraded the stock to “outperform” from “neutral” and raised their price target to $150 from $115. Analysts pointed to an “unprecedented outlook” for the next 12-18 months, citing Micron’s significant partnership with AI leaders such as Nvidia (NVDA).

Reddit shares also rallied after Bank of America raised its price target to $50 from $46, rising over 6% to $49.62 in intraday trading. Analysts expect positive results in the company’s revenues from advertising and data licensing for the first quarter, with Reddit scheduled to report its earnings after the closing bell on Tuesday, marking its first quarterly report since its trading debut in March.

Overall, technology stocks continued their upward trend on Monday, driven by strong demand for AI solutions and other cutting-edge technologies across various industries.