Shares of Palantir Technologies (NYSE: PLTR) charged out of the gate on Friday, surging as much as 10.4%. As of 1:44 p.m. ET, the stock was still up 8.4%.

The catalyst that sent the artificial intelligence (AI) software and data mining specialist higher was an announcement that its shares would begin trading on a new stock market exchange.

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Meet the newest member of the Nasdaq

An announcement that dropped after the market close on Thursday revealed that Palantir planned to transfer the listing of its common shares to the Nasdaq Global Select Market, aka Nasdaq, from the New York Stock Exchange. Palantir stock, which will retain its ticker symbol -- PLTR -- is expected to begin trading on the Nasdaq exchange on Tuesday, Nov. 26, 2024. The company also noted that "Palantir anticipates meeting the eligibility requirements of the Nasdaq-100 Index."

This follows Palantir's recent admission to the S&P 500 on Sept. 23.

Stocks often get a boost when they initially join a benchmark index because institutional investors and index funds that track these major market indexes buy shares of the stock.

Should investors buy Palantir now?

That Palantir is joining the Nasdaq isn't necessarily a reason to buy the stock, even if the company makes the cut for the Nasdaq-100. That said, there are still reasons to be bullish.

Palantir's long history of AI and data mining experience led to the development of its Artificial Intelligence Platform (AIP), which has propelled its U.S. commercial business to new heights. Customers work with Palantir engineers at the company's boot camps to develop AI tools that solve real-world business problems.

In the third quarter, its U.S. commercial revenue jumped 54% year over year, and the segment's customer count grew 77%. This illustrates that Palantir is no longer solely dependent on its military and government contracts.

Its valuation isn't for the faint of heart. The stock is currently trading for 169 times forward earnings and 42 times forward sales. However, its forward price/earnings-to-growth (PEG) ratio -- which factors in its stunning growth -- comes in at 0.5, when any number less than 1 is the standard for an undervalued stock.

Personally, I believe Palantir is a buy.

Should you invest $1,000 in Palantir Technologies right now?

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