Key Takeaways Palantir shares surged Wednesday as William Blair analysts suggested the company’s software could be well positioned to support Department of Government Efficiency efforts to trim spending.

Shares of Palantir have fallen by more than 33% in less than two weeks' time. News of tech giant Microsoft cancelling some AI data center leases may have spooked AI investors. That underscores the danger with Palantir's stock because as quickly as it has rallied, it could give back its gains just as fast.

The artificial intelligence gold rush has caused blistering returns for many tech stocks, including Palantir Technologies. While the S&P 500's 24% return last year is impressive, Palantir's 340% return trounces it.