Palantir Technologies (NASDAQ: PLTR) emerged as one of the biggest winners of 2024. Shares of the artificial intelligence (AI) and data analytics software company skyrocketed 340%. Palantir's additions to the S&P 500 and Nasdaq-100 indexes helped fuel investor excitement.

As reported by Reuters, Wall Street’s main indexes rose on Monday to more than one-week highs, driven by a rally in semiconductor stocks and news suggesting that the incoming Trump administration could adopt a less aggressive tariff stance than previously anticipated.

Wall Street's main indexes rose to one-week highs driven by optimism in AI boosting semiconductor stocks. Reports suggested a less aggressive Trump tariff stance, favoring selective tariffs for critical sectors.

The U.S. stock market just had another fantastic year. The broad-based S&P 500 (SNPINDEX: ^GSPC) returned 23%, the blue-chip Dow Jones Industrial Average (DJINDICES: ^DJI) advanced 13%, and the technology-focused Nasdaq Composite (NASDAQINDEX: ^IXIC) surged 29% in 2024.

Dan Niles, Niles Investment Management founder, recently said in a program on CNBC that a slowdown in spending could be a “big problem” for major AI players in 2025.

Rising technology stocks helped U.S. indexes recover more of their holiday-season slide that bridged the new year.

Most Wall Street analysts expect Palantir and Super Micro shares to decline in 2025, and certain analysts recommend selling the stocks. Palantir is a risky investment because of its expensive valuation,