One of the country's largest pension funds has taken a stake in the artificial intelligence (AI) and data mining specialist.

With President Donald Trump handing out tariffs like Oprah and inflation coming in worse than expected, the market’s resilience is commendable as it hovers around its record levels. A key reason for this has been the unsatiable appetite for artificial intelligence (AI).

We recently compiled a list of the 10 Best Performing S&P 500 Stocks So Far in 2025. In this article, we are going to take a look at where Palantir Technologies Inc.

Palantir was the best-performing member of the S&P 500 ( ^GSPC -0.01%) during that period. In fact, it beat the next closest stock by 250 percentage points. But Palantir is now one of the most expensive software stocks in history, and there is little questions about what happens next: One way or another, it's valuation is going to fall.

Move aside Apple, Microsoft, Alphabet and Tesla. There's a new group of Magnificent Seven stocks in the S&P 500.

The artificial intelligence narrative has dominated Wall Street over the past two years, and for good reason. According to a report from Statista, the AI market is forecast to expand at a compounded annual growth rate of 27.

One AI company that has bucked the trend, however, is data analytics provider Palantir Technologies (NASDAQ: PLTR). So far this year, Palantir is the highest performing stock in the S&P 500 (SNPINDEX: ^GSPC)-- gaining 48% as of this writing (Feb.