Momentum investing is all about the idea of following a stock's recent trend, which can be in either direction. In the 'long' context, investors will essentially be "buying high, but hoping to sell even higher.

Shares of Palantir Technologies ( PLTR -0.39%) have been one of the best-performing artificial intelligence (AI) stocks over the past few years. Another blowout earnings report sent the stock surging in early February. The stock rocketed 340% in 2024 and is already up 46% year to date in 2025.