Shares of Palantir Technologies ( PLTR 8.01%) are surging on Thursday. The artificial intelligence (AI)-powered data analytics company's stock gained 8.1% as of 1 p.m. ET and was up as much as 9% earlier in the day. The jump comes as the S&P 500 ( ^GSPC 0.58%) gained 1.5% and the Nasdaq Composite ( ^IXIC 1.07%) rose 2%.

With its shares up 58% year to date, Palantir Technologies (NASDAQ: PLTR) embarrassed its naysayers -- it has been repeatedly testing new highs despite calls of overvaluation. Palantir operates at the intersection of two of the market's biggest hype drivers right now: generative AI and President Donald Trump's election.

Palantir shares have advanced 550% since January 2024, which makes it the best performing stock in the S&P 500 and the second best in the Nasdaq-100. Louie DiPalma at William Blair Research says Palantir shares could decline 70% and it would still be the most expensive software stock on the market.