Worst to first

The only thing harder than getting to the top is staying there.

Palantir became a retail trader darling last year and was the best-performing stock of 2024, soaring 340% over the course of last year. It continued to rise at the start of 2025, buoyed by hype about its AI capabilities. But now, the stock has been in freefall for two days—dropping another 5.22% today, on top of Wednesday’s 10% decline.

The problem? Secretary of Defense Pete Hagseth reportedly proposed cutting defense budgets 8% annually over the next five years, which investors fear could result in Palantir’s lucrative deals with the US military getting the ax.

On top of that, Palantir also disclosed in a regulatory filing that CEO Alex Karp can sell 10 million shares of the company’s stock over the next six months.

The sharp decline shows the danger of having retail traders as your main investor base: They can boost you to crazy highs, but abandon you quickly if the narrative shifts.

And Wall Street isn’t coming to save Palantir: The median analyst rating on the stock, according to the WSJ, is “hold.”

From the dog house to top dog

But investor sentiment can turn on a dime in the other direction, too. Super Micro Computer is up over 97% year to date, and yesterday snatched Palantir’s spot as the best-performing stock on the S&P 500 in 2025.

While the stock declined 1.63% today, shares have risen 52% in the last five days alone—outpacing Palantir's 41% gain in 2025 so far.

You might be thinking, wait…is that the same Super Micro Computer that only gained 8% last year and could potentially be delisted from the Nasdaq next week? Yes. Yes it is.

Despite its history of accounting catastrophes, the company has been able to defy low expectations and prove it actually has a better business going than the haters thought. For its second quarter this year, the company forecast $40 billion of revenue for its fiscal 2026, way above analyst forecasts.

But don’t call it a comeback yet—Super Micro Computer hasn’t yet filed its critical 10-K form with the SEC to avoid being delisted, and the deadline is fast approaching. Super Micro Computer may be the next top stock to tumble, and who knows which company will take the throne then.—LB