Key Takeaways Palantir shares jumped Tuesday after the analytics software provider announced that its entire product suite has received approval for use in processing sensitive federal workloads, positioning the firm to provide an array of services to government entities.

Investors should expect that some selling pressure will come in the form of short-term profit-taking before year-end. However, any weakness in Palantir will certainly be met with additional buyers as long-term investors are likely to be waiting for an opportunity to buy Palantir stock on a dip.

Among AI's hottest stocks through 2024 are data analytics company Palantir Technologies ( PLTR 6.88%) and semiconductor leader Nvidia ( NVDA 1.18%). Both companies have handily topped the markets this year -- with shares of Palantir rocketing by 291% while Nvidia has gained about 179% (as of market close Nov. 29).