AI Fighter Pilots: Should You Buy, Hold, or Flee?

Disclaimer: This blog reflects personal opinions and should not be considered financial advice. Always do your own research or consult with a professional before making investment decisions.

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Artificial intelligence is no longer a distant dream for the battlefield—it’s here. From AI-piloted F-16s to autonomous drones like the Kratos XQ-58A Valkyrie, military aviation is undergoing a high-tech revolution. At the center of this shift is Palantir Technologies (PLTR), a company providing the AI-driven data analytics that power these futuristic systems. Sounds like a no-brainer investment, right? Not so fast.

While Palantir is making headlines in defense tech, there’s another narrative grabbing investor attention: CEO Alex Karp’s massive stock sell-off. So, should you ride this wave, hold steady, or follow Karp to the exit? Let’s dig in.

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Palantir: Building the Skies of Tomorrow

Palantir’s software is a backbone for military AI systems, enabling real-time decision-making for both manned and unmanned aircraft. Technologies like Collaborative Combat Aircraft (CCAs) are designed to work alongside human pilots—or potentially replace them entirely. Governments around the world are pouring billions into this tech, and companies like Palantir are cashing in.

But innovation doesn’t always equal a smooth ride for investors.

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The CEO Is Selling… Should You Worry?

Let’s talk about the elephant in the boardroom: Palantir CEO Alex Karp sold around 40.7 million shares in 2024 (a cool $1.95 billion) and plans to offload another 9.975 million shares by September 2025. Sure, executives sell for all kinds of reasons—taxes, diversification, buying that third vacation home—but when the CEO is cashing out billions, it raises eyebrows.

Combine that with Palantir’s stock sliding over 17% recently, and you have to wonder: Is this just a strategic move, or is there turbulence ahead?

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Wait… If He’s Selling, Who’s Buying?

Markets are a two-way street. For every seller, there must be a buyer—and it turns out some heavy hitters are still filling their carts with Palantir shares:

• • Vanguard Total Stock Market Index Fund: ~64.5 million shares (2.96%)

• • Vanguard 500 Index Fund: ~52.4 million shares (2.40%)

• • Vanguard Mid-Cap Index Fund: ~42.8 million shares (1.96%)

Plus, ETFs like the REX AI Equity Premium Income ETF (AIPI), Global X Funds (SHLD), and Adaptive Select ETF (ADPV) remain invested. Translation? Big institutions aren’t fleeing just yet.

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Investing Smarter: Avoid Putting All Your Chips on One Company

Sure, AI-powered fighter jets sound like a sci-fi dream come true—but your investment strategy shouldn’t be based on hype alone. Diversification is key. Instead of betting your portfolio on a single stock (no matter how shiny), consider broader funds that include exposure to both AI and defense sectors.

Here are some diversified options to consider:

• • AI-Focused ETFs:

    • • Global X Robotics & Artificial Intelligence ETF (BOTZ)
    • • iShares Robotics and Artificial Intelligence ETF (IRBO)

• • Defense Sector ETFs:

    • • iShares U.S. Aerospace & Defense ETF (ITA)
    • • SPDR S&P Aerospace & Defense ETF (XAR)

These funds let you tap into industry growth without putting all your eggs in one Palantir-shaped basket.

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So… Buy, Hold, or Flee?

Here’s the deal: Someone’s selling, someone’s buying, and you’re left wondering what to do. Karp’s massive sell-off might make you nervous, but institutional investors still backing the stock could offer a glimmer of confidence. Markets thrive on this push-and-pull dynamic. The real question is: Where do you stand?

If you’re itching to invest but don’t want the drama of stock-specific volatility, S&P 500 ETFs might be your best wingman.

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Final Approach: S&P 500 ETFs with Exposure to AI and Defense

For those wanting a smoother ride, S&P 500 ETFs offer broad market exposure with a side of AI and defense tech. These funds hold shares of companies like Palantir, Lockheed Martin, and other industry giants—without making you choose between “buy,” “hold,” or “panic-sell.”

Top picks to consider:

• • SPDR S&P 500 ETF Trust (SPY): Broad exposure to the market, including defense and tech heavyweights.

• • Vanguard S&P 500 ETF (VOO): Low fees, high exposure to leading innovators.

• • iShares Core S&P 500 ETF (IVV): A diversified option with a mix of growth and stability.

With these ETFs, you’re not just riding the AI fighter jet trend—you’re cruising with a diversified fleet.

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Bottom line? Cutting-edge military tech is thrilling, but don’t let excitement steer your portfolio into risky territory. Diversify, stay informed, and remember: For every CEO selling, there’s an institution buying. Where you land is up to you—but diversification is always a safe runway.

#ETF #VOO #S&P500 #QQQ #Palantir