Investing in AI stocks like Nvidia and Palantir Technologies could be lucrative.

From Nasdaq: 2024-09-25 06:32:00

The stock market has been driven by artificial intelligence (AI) systems, with Nasdaq-100 Technology Sector index gaining 75% in the past two years compared to the S&P 500’s 54% rise. Investing in AI stocks like Nvidia and Palantir Technologies could be a smart move, as McKinsey estimates generative AI could boost the global economy by trillions annually.

1. Nvidia has been a key player in the AI trend, supplying a significant portion of AI chips. Its revenue surged by 122% year over year in fiscal 2025, reaching $30 billion, mainly driven by data center revenue. Nvidia is positioned to dominate the AI chip market, which is expected to generate $305 billion in revenue in 2030.

2. Palantir Technologies focuses on AI software for commercial and government customers. Their AI Platform has led to increased revenue and customer growth, with revenue growing by 27% year over year in Q2. Analysts expect Palantir to deliver strong growth in the coming years, with the company projected to generate almost $4 billion in revenue in 2026.



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