Comparison between Palantir Technologies Inc. and NVIDIA Corporation in the AI sector for 2025.

From Nasdaq: 2024-12-26 21:00:00

The stock performance of Palantir Technologies Inc. (PLTR) has surged by 386.7% YTD, outperforming NVIDIA Corporation (NVDA) in 2024. Retail traders invested nearly $30 billion in NVIDIA shares this year, making it the second-most valuable U.S. company.

Palantir’s AI Platform (AIP) success, customer and revenue growth, and significant exposure to the government sector highlight its bullish case. In contrast, NVIDIA’s dominance in the GPU market, cutting-edge technology with Blackwell chips, and robust shipment growth give it an edge in AI dominance for 2025.

NVIDIA’s more attractive valuation, higher growth prospects, and dividend advantage make it a better investment compared to Palantir. NVIDIA’s established market dominance and pricing power provide greater resilience, especially with the Blackwell rollout in 2025.

Investors looking for AI plays can consider NVIDIA-heavy ETFs like VanEck Semiconductor ETF (SMH), Columbia Semiconductor and Technology ETF (SEMI), and Strive U.S. Semiconductor ETF (SHOC). Palantir, on the other hand, remains a high-growth momentum stock with exposure to the government sector, making PLTR-heavy ETFs like ProShares Big Data Refiners ETF (DAT), REX AI Equity Premium Income ETF (AIPI), and Adaptiv Select ETF (ADPV) attractive options.

While both Palantir and NVIDIA are poised for growth in the AI sector, NVIDIA’s market dominance, attractive valuation, and Blackwell chip rollout make it a better investment for 2025. However, growing competition and slowing sales growth could pose challenges, making ETFs a diversified option for investors interested in AI plays.



Read more at Nasdaq: Palantir vs. NVIDIA ETFs: Better AI Plays for 2025?