Investing Strategies Amid Market Pullbacks: Focus on Growth Stocks

U.S. stocks have faced recent pressure due to President Trump’s shift toward more protectionist economic policies. However, experienced long-term investors understand that sharp market pullbacks can create valuable buying opportunities.

With this mindset, I’m capitalizing on the current market weakness to acquire shares in two ultra-high-growth companies. Below is a brief overview of their investment cases and key risks to keep in mind.

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Palantir Technologies: AI-Driven Decision Making

Palantir Technologies (NASDAQ: PLTR) is a top provider of decision optimization software powered by its proprietary artificial intelligence (AI) platforms. The stock has dipped 27% from its 52-week high, yet Wall Street projects about 58% revenue growth in 2025 and 2026. This expectation explains its striking 169 times forward earnings multiple.

Palantir stands out due to its ontology framework, which uncovers hidden relationships in complex datasets, enhancing decision-making for both government and commercial clients. Its platforms—Gotham for government and Foundry for businesses—create a continuous improvement loop through machine learning, engaging all stakeholders effectively.

Although primarily focused on Western markets and facing competitive pressures as AI inference costs lower, Palantir’s innovative sales strategies and AI integration capabilities position the company well for growth amid a surge in enterprise AI adoption.

Oklo: AI-Powered Nuclear Energy Solutions

Oklo (NYSE: OKLO) offers a distinctive angle on the AI investment narrative as it develops advanced fast fission power plants aimed at delivering clean, reliable energy on a large scale. As major companies like Google, Microsoft, and Amazon grapple with soaring electricity demands from AI data centers, Oklo is stepping into a critical market.

Oklo’s stock has declined 51% from its 52-week high and is currently cash flow negative. Nonetheless, it provides a unique opportunity in AI-driven energy infrastructure, targeting a market poised to be worth hundreds of billions by the end of this decade.

Recently, Oklo made significant strides by finalizing agreements with the U.S. Department of Energy and Idaho National Laboratory for its first commercial powerhouse in Idaho. The Aurora powerhouses aim to meet the growing energy needs of AI technologies using carbon-free nuclear power.

However, investing in Oklo carries risk, notably the lengthy and uncertain regulatory approval process that often plagues nuclear projects, potentially delaying deployment and increasing capital outlay.

Making the Most of Market Weakness

Historically, market pullbacks have been exceptional opportunities for long-term investors willing to embrace volatility. Palantir and Oklo represent two approaches for harnessing substantial growth in the next decade—one through innovative software that enhances decision-making across sectors and the other by building energy infrastructure that supports the digital economy.

While the stocks bear different risk profiles—Palantir with its premiumvaluation and Oklo with its early-stage status and regulatory challenges—both present significant upside potential. For growth-focused portfolios, the risks may be outweighed by the companies’ competitive advantages and long-term visions, making current prices and valuations attractive for buy-and-hold investors.

Should You Invest $1,000 in Palantir Technologies Now?

Before considering an investment in stock in Palantir Technologies, it’s essential to evaluate the broader context:

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John Mackey, former CEO of Whole Foods Market, is part of The Motley Fool’s board of directors. George Budwell owns shares in Microsoft and Palantir Technologies. The Motley Fool holds positions in and recommends Amazon, Microsoft, and Palantir Technologies. The Motley Fool also recommends options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.

The views expressed in this article represent those of the author and do not necessarily reflect the views of Nasdaq, Inc.