Nvidia expected to outperform Palantir in 2025 due to better valuation and analyst ratings.

From Nasdaq: 2024-12-12 06:37:00

Palantir Technologies (PLTR) is projected to outperform Nvidia (NVDA) in AI stock growth for 2024, with a 330% increase in shares compared to Nvidia’s 180%. However, Nvidia stands out with 94% revenue growth and 103% EPS increase, thanks to its new Blackwell architecture products. The two companies are in different growth leagues.

Despite Palantir’s strong growth, Nvidia emerges as the better investment option for 2025. Nvidia’s valuation metrics, including a lower forward earnings multiple of 33.4 and a PEG ratio of 0.89, make it a more attractive choice compared to Palantir’s 161 times forward earnings and 3.34 PEG ratio. Nvidia is the clear winner in terms of valuation.

Wall Street analysts also favor Nvidia over Palantir. While only four out of 19 analysts recommend buying Palantir, 59 out of 63 analysts rate Nvidia as a “buy” or “strong buy.” Nvidia’s 12-month price target shows a 24% potential upside, while Palantir’s target is around 47% lower than its current share price. Wall Street consensus strongly supports Nvidia as the preferred stock.

Investors may want to consider investing in Nvidia based on the recommendations of the Motley Fool Stock Advisor analyst team. While Nvidia wasn’t included in their list of top 10 stocks, the service has historically provided significant returns for investors, outperforming the S&P 500 since 2002. With regular updates and stock picks, Stock Advisor offers a proven blueprint for investment success.

Keith Speights, the author, does not hold positions in mentioned stocks, but The Motley Fool recommends and has positions in both Nvidia and Palantir Technologies. The article provides valuable insights into the AI stock market and investment opportunities for 2025.



Read more at Nasdaq: Why Nvidia Is the Hands-Down Better Stock to Buy Than Palantir for 2025