The sudden reversal shows how the hottest AI trade and top-performing stock of the year is colliding with a broader market rotation out of Big Tech.

Then, short seller Andrew Left of Citron Research said PLTR stock was "detached from fundamentals and analysis". He's certainly not the first one to suggest that the Palantir rally has gone too far. However,

Software stocks have been under pressure—and there may be more selling to come as highflying shares of Palantir finally succumb to gravity.