Planned cuts to defense spending sparked a sell-off for Palantir stock that has continued into this week. Shares have tumbled after touching records.

Palantir Technologies Inc. PLTR stock has had an incredible run over the past year. Shares have skyrocketed by an impressive 283%, outpacing the industry’s 58% growth. PLTR stock’s consistent surge reflects optimism among investors eager to tap into the rapidly growing artificial intelligence (AI) market.

Shares of Palantir Technologies ( PLTR -10.53%) are trading lower on Monday. The company's stock lost 8.4% as of 11:50 a.m. after losing as much as 11.9% earlier today. The drop comes as the S&P 500 was flat while the Nasdaq Composite lost 0.4%.