Burke Wealth Adds Palantir Position Amid Q3 Software Recovery

Burke Wealth Management initiated a new position in Palantir Technologies Inc. (NASDAQ: PLTR) during the third quarter of 2026, describing the data analytics and AI software company as the fastest growing software business in the world. The investment management firm disclosed this addition in its "Focused Growth Strategy" Q3 2026 investor letter, released alongside details on the fund's recent performance and outlook.

The fund reported a net return of 10.8% for the third quarter of 2026, significantly outperforming the S&P 500 Total Return Index, which gained 2.3% over the same period. Year-to-date returns for the Focused Growth Strategy reached 20.0%, compared with a 12.7% gain for the benchmark index. Burke Wealth attributed the quarter's strength to a sharp recovery in enterprise software and solid corporate earnings, noting that investors are reassessing the long-term value of platforms that securely connect AI models with proprietary business data.

The firm views such platforms as essential AI "harnesses" that provide permissions, security, and context for enterprise applications. However, Burke Wealth cautioned that AI agents could challenge traditional software business models and seat-based pricing structures. Looking ahead to the remainder of 2026, the firm expressed optimism based on strong corporate earnings growth and a transition from AI infrastructure investment toward practical applications intended to improve productivity and consumer experiences.

Palantir Technologies develops software for government agencies and commercial enterprises to integrate information and support complex operational decisions. As of October 23, 2026, Palantir stock closed at approximately $196.75 per share, with a market capitalization of about $478.35 billion. The shares traded between $106.37 and $212.94 over the last 52 weeks, while the one-month return stood at 5.94%.

Hedge fund interest in Palantir has shown recent fluctuation. According to database records cited in the report, 86 hedge fund portfolios held Palantir shares at the end of the second quarter of 2026, down from 96 in the previous quarter. The report notes that Palantir is not currently on a list of 40 most popular stocks among hedge funds heading into 2026.

While acknowledging the risk and potential of Palantir as an investment, the report states that conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns within a shorter time frame.