AI Security Stocks Soar: Palantir, Cloudflare Up

Palantir Technologies stock is up 5% in midday trading, with shares near $134. Cloudflare stock is also trading higher by 3%, at around $235. These moves come as investors appear to be rotating back into AI and security software. The broader NASDAQ 100 tracking ETF is up 3%, and the SPDR S&P 500 ETF Trust is up 1.9% intraday. This suggests a macro-related catalyst, rather than company-specific news. Both Palantir and Cloudflare are considered speculative, high-volatility names in the AI infrastructure and security segment. Palantir's stock is down 24% year-to-date, despite strong fundamentals like 85% year-over-year revenue growth in the first quarter of 2026. Cloudflare, however, is up 20% year-to-date, boosted by its focus on an AI-first operating model. The bottom line is that these gains reflect a renewed risk appetite in the market, particularly for AI security plays.