Wall Street recommends buying Nvidia and selling Palantir due to valuation differences

From Nasdaq: 2025-06-03 03:15:00

Year to date, Nvidia (NASDAQ: NVDA) stock has returned 2%, while Palantir Technologies (NASDAQ: PLTR) stock has advanced 72%. Wall Street analysts suggest buying Nvidia with a median target price of $175 per share for 30% upside, while Palantir has a target price of $100 per share, implying 23% downside.

Nvidia reported strong Q1 results with revenue up 69% to $44 billion and non-GAAP net income up 33% to $0.81 per share. With a dominant market share in data center GPUs and booming networking business, analysts forecast a 44% increase in adjusted earnings for fiscal 2027.

Palantir reported impressive Q1 financial results with revenue up 39% to $884 million and non-GAAP earnings up 62% to $0.13 per share. The company’s unique software architecture and ability to operationalize AI have positioned it as a leader in decision intelligence and AI platforms.

Despite its strong fundamentals, Nvidia is facing challenges due to semiconductor export restrictions, impacting revenue. However, analysts still expect a 44% increase in adjusted earnings for fiscal 2027, making the current valuation look cheap at 43 times earnings. Patient investors may find value in buying at the current price.

Palantir, on the other hand, commands a rich valuation with the stock trading at 285 times adjusted earnings. Analysts project a modest 26% earnings increase for the current year, making the risk-reward profile heavily skewed towards risk at the current price. Prospective investors may want to wait for a better buying opportunity, while current shareholders can hold tight.



Read more at Nasdaq: Palantir Stock vs. Nvidia Stock: Wall Street Says Buy One and Sell the Other