Shares of the artificial intelligence (AI) decision-making company Palantir Technologies (PLTR 5.29%) traded roughly 7.4% higher, as of 11:27 p.m. ET today. There was no clear company-specific reason behind the move, but shares seemed to be rallying along with the broader market in hopes of some reprieve from tariffs.

A market bounce

After markets got crushed between Thursday and Monday, investors are finally catching a break with a broader market rally today in hopes that President Donald Trump and his administration will strike trade deals with other countries and avoid having to implement the steep tariffs announced last week. No stock has been spared from the fall.

Compared to many other stocks, Palantir has held up quite well this year, with its stock up 12%. The stock still trades at a sky-high valuation, and Palantir has also managed to shake off concerns about spending cuts to the U.S. Department of Defense's budget, which could impact the company because it does a lot of work with the U.S. government in the defense space.

Still, the Trump administration does seem supportive of innovative AI companies. In a fact sheet issued yesterday, the White House stated, "The Executive Branch is shifting to a forward-leaning, pro-innovation and pro competition mindset...Agencies will empower AI leaders to remove barriers to AI innovation."

The stock has been resilient

While Palantir stock is still down from late February, it has proven remarkably resilient this year in the face of many challenges that began prior to Trump's tariff announcement. This has happened while Palantir trades at 139 times forward earnings. That's a bit rich for my taste, but for some, it may be a dip-buying opportunity. If you do decide to buy, prepare for the stock to be volatile, and take a long-term approach.