Nvidia favored over Palantir for investment due to stronger growth potential

From Nasdaq: 2025-04-09 03:31:00

Shares of Nvidia and Palantir Technologies have dropped significantly in the recent market downturn. Analysts predict higher gains for Nvidia, with a median target price of $175 per share, representing a 73% upside from the current price. Palantir has a median target price of $96 per share, indicating an 18% increase. Wall Street remains optimistic about both stocks, with Nvidia’s dominance in accelerated computing and Palantir’s unique AI operationalization capabilities being key factors.

Nvidia’s strong position in accelerated computing and AI, along with its GPUs and software development tools, make it a standout in the industry. The company’s recent financial performance, with a 78% revenue increase and 71% rise in non-GAAP earnings, demonstrates its growth potential. Wall Street expects a 51% increase in adjusted earnings for Nvidia in fiscal 2026, aligning with the projected 36% annual growth in AI spending till 2030.

Palantir’s strength lies in operationalizing AI for commercial and government clients, with a focus on deploying AI applications effectively. The company exceeded expectations in the fourth quarter, reporting a 36% revenue increase and a 75% rise in non-GAAP earnings. Although Wall Street anticipates a 37% increase in Palantir’s adjusted earnings by 2025, the current valuation of 200 times earnings raises some concerns.

Investors are advised to consider the potential of both Nvidia and Palantir, with Nvidia being seen as the more favorable investment choice at present. While both companies have their strengths, Nvidia’s market dominance and growth prospects make it a compelling option for investors.



Read more at Nasdaq: Best AI Stock to Buy Now: Nvidia vs. Palantir Technologies