Palantir leads in AI platform, NVIDIA sales surge, both face challenges

Zacks.com highlights stocks like Palantir Technologies Inc. and NVIDIA Corp. in their Analyst Blog. Palantir’s AI software platform has outperformed NVIDIA, but NVIDIA’s sales surged 69% due to demand for their Blackwell chips. Both companies face challenges from tariffs and geopolitical tensions. Palantir’s AIP drives revenue growth, while NVIDIA benefits from AI chip demand.

Palantir’s revenue growth from commercial and government contracts led to strong financial results in the first quarter. The company’s AI products like Warp Speed are expected to drive future revenue growth. Investors are optimistic about Palantir’s involvement in key projects like the Golden Dome missile defense system. The ongoing AI arms race could further benefit Palantir.

In the debate between investing in NVIDIA or Palantir, NVIDIA emerges as the better choice for the second half of 2025. Palantir’s high valuation and potential economic downturn risks make it a riskier investment. NVIDIA’s strong performance and lower forward earnings multiple position it as a more stable option. Both stocks currently hold a Zacks Rank #3 (Hold).

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Read more at Nasdaq: The Zacks Analyst Blog Highlights Palantir, NVIDIA, Microsoft, Amazon.com and Alphabet