Why Palantir, Microsoft and Broadcom Are Moving Higher Today

The broader market has seen a considerable decline over the past week as investors re-assessed tech names. Wall Street’s change of mind about AI already drove down stocks. Still, as the Trump administration announced more tariffs for China and remained stubborn on slapping tariffs on both Canada and Mexico, the market declined again.

However, certain stocks have started showing promising signs of a recovery. Palantir (NASDAQ:PLTR), Microsoft (NASDAQ:MSFT), and Broadcom (NASDAQ:AVGO) have moved higher today. These stocks were beaten down considerably in the past few days, and the recent move higher could be a sign that Wall Street is taking a break from selling.

24/7 Wall St. Key Points:

• PLTR, MSFT, and AVGO have been moving higher today.
• Investors are optimistic that a tariff compromise between the U.S., Canada, and Mexico could happen again.
• Such a compromise is still tentative, so the recovery of all three stocks still hangs in the balance. In the meantime, grab our free “The Next NVIDIA” report. It includes a software stock with 10X potential.

What Happened

Commerce Secretary Howard Lutnick said that a previous tariff compromise that was reached with both Canada and Mexico could be on the table again today. Trump has given signals that he was unwavering in his decision this time, but that no longer seems to be the case as markets reacted negatively.

Certain stocks have started a small recovery rally after the news, and PLTR, MSFT, and AVGO are among them. The S&P 500, the Nasdaq, and the Dow are all still down after market open since the compromise remains tentative. Moreover, there’s no indication that tariffs will be softened regarding China.

What it Means for Palantir, Microsoft, and Broadcom

Stocks rarely rise or fall vertically when the broader market cycle shifts. Many believe we’re undergoing such a shift as all Magnificent Seven stocks have fallen below their 200-day moving averages. This is something that last happened in 2022.

The current recovery is too light to be considered as buy signals, and they could still close red based on how the day progresses. However, if a tariff compromise is reached, this could allow for a stronger recovery in these stocks.

Regardless, markets were turning bearish even before the recent tariff drama due to a perceived slowdown in AI technology, along with a slowdown in the data center industry. Microsoft earlier canceled some data center contracts, and Broadcom was negatively impacted by Nvidia’s (NASDAQ:NVDA) soft beat and news that it was testing out Intel’s (NASDAQ:INTC) manufacturing chip process. Investors don’t like the thought of Broadcom using Intel as a manufacturer.

As for PLTR, the stock remains quite overvalued, at least fundamentally, according to Wall Street analysts. The consensus price target for PLTR is at $74.79 and implies 11.73% downside.

The consensus price target for MSFT is at $510.96 and implies 30.67% upside.

The consensus price target for AVGO is at $225.04 and implies 20.1% upside.

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