Nvidia and Palantir Technologies have been top choices for tech investors, with massive gains of over 1,000% since 2023. Nvidia boasts a market cap of $4.2 trillion, while Palantir sits at $360 billion. Both companies play significant roles in artificial intelligence and data analytics, making them popular among retail investors.

For Nvidia to reach a $5 trillion market cap, it would need to rise by 19%, a plausible scenario given its dominance in the AI chip market and high demand for its products. With a forward P/E ratio of 38 and strong earnings growth, Nvidia looks poised for continued success in the AI sector.

Palantir, on the other hand, would need to triple in value to hit a $1 trillion market cap. Despite its high forward P/E ratio of 260, investors are focused on the company’s growth potential in data analytics and government partnerships. Increased defense spending could serve as a positive catalyst for Palantir’s stock price.

While both stocks have been stellar performers, the likelihood of Nvidia hitting $5 trillion before Palantir reaches $1 trillion seems more probable. Nvidia’s solid fundamentals and dominant market position make it a more stable investment compared to Palantir’s speculative valuation and vulnerability to market fluctuations.

Read more at Nasdaq: Which Will Come First: Palantir Technologies Hitting $1 Trillion or Nvidia Reaching $5 Trillion?