Palantir Technologies (NYSE: PLTR) shares were soaring today even as tech stocks tumbled broadly on fears that interest rates would remain elevated.

The artificial intelligence (AI)-focused data analytics company said it would switch from the New York Stock Exchange to the Nasdaq, and it expected to be admitted to the elite Nasdaq-100 index.

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Palantir stock was up 8.2% as of 3:11 p.m. ET, and it hit another all-time high on the news.

A Nasdaq welcome party for Palantir

After hours yesterday, Palantir announced that it will transfer the listing of its Class A common stock to the Nasdaq, and it expects to begin trading as a Nasdaq-listed stock on Nov. 26.

The company also said it expects to meet the eligibility requirements of the Nasdaq-100 index, which is made up of the 100 most valuable Nasdaq stocks, and that seems to be the main reason why the stock is rising.

The Invesco QQQ Trust (NASDAQ: QQQ) tracks the Nasdaq-100, and it is one of the most popular index funds on the market, as it currently has net assets of nearly $300 billion. If Palantir joins the Nasdaq-100, that means exchange-traded funds (ETFs) that track that index will have to buy the stock, giving it a lift due to the wave of ETF buyers that come in and essentially remove those shares from the company's float.

Palantir stock got a similar bump earlier in the year after it was admitted to the S&P 500 (SNPINDEX: ^GSPC), as there are a number of ETFs that track that index.

Is Palantir still a buy?

Palantir stock is seemingly defying gravity as it continues to move higher, even as its valuation gets more inflated.

After today's gains, the stock now trades at a price-to-sales ratio of 54, and a price-to-earnings ratio close to 200. While the company has shown off accelerating revenue growth and expanding profit margins in its recent quarterly reports, the stock is very much priced for perfection.

At the current valuation, patient investors are likely to get a better buying opportunity in Palantir stock by waiting.

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