Analysts are more bullish on Nvidia than Palantir due to growth prospects and financial metrics.

From Nasdaq: 2024-10-04 05:47:00

Palantir Technologies (NYSE: PLTR) has seen its share price skyrocket 112% this year, thanks in part to major deals with companies like BP, Microsoft, and Wendy’s. In comparison, Nvidia (NASDAQ: NVDA) has surged 136%, despite concerns about its delayed Blackwell GPU launch.

Wall Street analysts are much more bullish on Nvidia than Palantir. LSEG survey results show 18 analysts rating Nvidia as a “strong buy” and 37 as a “buy.” For Palantir, only three analysts rate it as a “strong buy” and four as “underperform.”

The disparity in analyst ratings is reflected in the 12-month price targets for these stocks. The consensus target for Nvidia implies a 27% upside, while the average target for Palantir is 25% below the current share price.

Analysts prefer Nvidia over Palantir due to perceptions of growth prospects, market dominance, and financial metrics. While both companies are expected to grow, Nvidia’s stronger market position and financials make it a more appealing investment option.

Despite the analyst consensus, the future performance of Nvidia and Palantir remains uncertain. While Nvidia seems like a better investment currently, potential shifts in the AI chip market could impact both companies’ valuations.

Investors should consider all factors before investing in Nvidia. While the stock has performed well, there are risks to consider. The Motley Fool Stock Advisor service offers insights on the best stocks to buy now, including those with significant growth potential.

Overall, Nvidia’s strong performance and market position make it a more attractive investment compared to Palantir. Investors should weigh the potential risks and rewards before making any investment decisions.



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