Palantir's price-to-sales ratio of 114 is way above OpenAI's 17. Palantir's success in defense work could block access to growth as enterprise AI payoff remains elusive

The sudden reversal shows how the hottest AI trade and top-performing stock of the year is colliding with a broader market rotation out of big tech.

Shares in the artificial intelligence software maker Palantir slid more 6% on Wednesday morning. The company's stock price has dropped around 20% over the past week, eradicating the gains made after it reported strong quarterly earnings on August 4.