Nvidia is preferred over Palantir for AI stock investment due to faster growth rate.

From Nasdaq: 2024-12-11 18:15:00

Shares of Palantir Technologies (NASDAQ: PLTR) and Nvidia (NASDAQ: NVDA) have surged this year due to the increasing demand for AI hardware and software. While Palantir’s stock has gained 345%, Nvidia has seen a 188% increase. Palantir’s AI Platform growth and revenue pipeline acceleration make it a strong contender in the AI market.

Palantir’s revenue in Q3 2024 rose by 30% to $726 million, with a 39% increase in customer count and a 118% net-dollar retention rate. The company’s robust revenue pipeline, valued at $4.5 billion, indicates sustained growth potential. Palantir has raised its full-year revenue guidance to over $2.8 billion for 2024, with expectations of continued growth.

Nvidia, known for AI GPU dominance, has recorded impressive growth and is expected to grow by 112% in fiscal 2025. The company controls over 85% of the AI GPU market and has a strong revenue forecast. Nvidia’s expansion into AI software and hardware markets positions it as a top growth stock for long-term investment.

Despite Palantir’s strong performance, Nvidia’s faster growth rate, lower valuation, and larger addressable market make it a preferred choice for investors. Nvidia’s projected growth and dominance in AI hardware and software markets suggest long-term potential for significant returns. Consider Nvidia for a more complete AI stock investment compared to Palantir.



Read more at Nasdaq: Better Artificial Intelligence Stock: Palantir vs. Nvidia