Ken Griffin is betting on Palantir: A bold move with risks

The financial world is once again fixated on Ken Griffin, the founder and CEO of Citadel Advisors. His hedge fund is ranked by LCH Investments as the most successful since inception. Griffin, often referred to as perhaps the most successful hedge fund manager in history, remains a fascinating subject of study for equity investors. In the second quarter, Griffin sold 9.2 million Nvidia shares, a reduction of his position by 72%. At the same time, he increased his stake in Palantir Technologies by 5.2 million shares, an impressive increase of 1,140%. Despite this reshuffling, Citadel still held twice as much capital in Nvidia as in Palantir as of June 30. This indicates that Griffin continues to have confidence in the chip manufacturer. Palantir has experienced a growth boom with a 140% rise in its stock price this year. The data analytics company recently impressed with strong financial results, including a 27% revenue growth in the second quarter, with improving prospects. Central to this is the introduction of the AI platform AIP, which could be key to further growth. However, Palantir's market valuation is ambitious, making some analysts skeptical. While Nvidia is comparatively more moderately valued and is expected to see a 53% profit growth for the coming year, Griffin might consider expanding his position there again. However, in Palantir's currently overvalued environment, Wall Street remains rather skeptical, which could trigger a selling impulse for Griffin in the third quarter. The decision for or against an investment in Palantir should be well-considered. Despite high market expectations, the risks remain significant. Ultimately, the courage of the investor will decide whether to follow Ken Griffin's path.