Nvidia and Palantir both show promise in AI sector, but Nvidia is considered better buy.

From Nasdaq: 2025-02-06 03:25:00

Nvidia and Palantir Technologies were top performers in 2024, with Nvidia’s shares rising 171% and Palantir’s surging 340%. Both companies have reported record earnings driven by demand from AI customers. As the AI market is forecasted to grow to over $1 trillion, more growth is expected from these tech giants.

Nvidia is a leading seller of GPUs, powering AI tasks for major tech players like Meta Platforms and Microsoft. Demand for Nvidia’s latest release, the Blackwell architecture, has exceeded supply, with revenue expectations in the billions. Nvidia consistently reports strong revenue growth and is set to announce its latest figures on Feb. 26.

Palantir helps customers aggregate data for key decisions and automation, with a recent focus on commercial customers. The company’s AIP platform leverages AI to transform data usage, resulting in efficiency gains for clients. Palantir expects U.S. commercial revenue to rise over 54% this year, driving further growth for the company.

Nvidia’s forward P/E ratio is currently 26, compared to 171 for Palantir. Despite both companies showing promise for growth, Nvidia’s valuation is considered more favorable, making it the better AI buy at this time. Investors can consider both companies for potential growth opportunities in the AI sector.



Read more at Nasdaq: Better AI Buy Right Now: Nvidia vs Palantir