Palantir (PLTR.US) CEO sells over 400,000 shares, stock price drops for the sixth consecutive time, sparking concerns about overheating in AI investments.

Data analysis company Palantir Technologies (PLTR.US) CEO Alex Karp sold over 409,072 shares of the company's stock last week, attracting market attention. According to the latest Form 4 filing from the U.S. Securities and Exchange Commission (SEC), Karp sold a total of 409,072 common shares on Wednesday and Thursday last week, with the transaction price ranging from $142.46 to $157.56. This transaction was part of an automated divestiture plan to cover tax obligations after the vesting of restricted stock units (RSUs). After the transaction, Karp still holds approximately 6.43 million shares of Palantir stock, with a market value exceeding $1 billion based on Monday's closing price. Palantir stock has been performing strongly this year, despite skepticism about its high valuation and volatility. The stock has continued to climb, with a year-to-date increase of over 100%. However, the recent upward trend has encountered resistance. The stock has fallen for six consecutive trading days since last Wednesday, marking the longest losing streak since April 2024. The closing price on Monday was $157.17, down 1%. The iShares Expanded Tech-Software Sector ETF, which tracks the software sector, also fell by 0.7%. After Palantir reported strong second-quarter earnings earlier this month, the stock price surged but then entered a period of adjustment. The overall enthusiasm for the artificial intelligence sector in the market has also cooled down, with AI leader NVIDIA Corporation (NVDA.US) and other individual stocks under pressure recently. Investors are concerned about whether generative AI can quickly bring in substantial revenue as expected. OpenAI CEO Sam Altman recently stated that the market is "overly excited" about AI, and a research report from MIT questioning the commercial prospects of generative AI further dampened investor confidence. Against this backdrop, the market is now focusing on NVIDIA Corporation's upcoming earnings report this week. As a barometer of the AI and semiconductor industries, comments from NVIDIA Corporation CEO Jensen Huang are expected to provide important signals for the future demand of AI.