In Q3, both Nvidia and Palantir saw rapid revenue growth rates, driven by the AI boom. Nvidia’s revenue rose 62% to $57.0 billion, while Palantir’s revenue increased 63% to about $1.2 billion, with U.S. commercial revenue up 121% to $397 million.

Nvidia’s data center segment led the growth, with sales exceeding supply due to high demand for cloud GPUs. Palantir’s AI Platform (AIP) is witnessing rapid adoption, driving its revenue growth. Nvidia’s valuation is more justified with a forward P/E ratio of 25, compared to Palantir’s 175, making Nvidia the better buy for 2026.

While Palantir has shown impressive growth, its valuation at over 400 times earnings may be too high. Nvidia’s growth and valuation make it a more attractive investment option, despite risks like competition and potential market saturation for AI-capable GPUs. Investors may consider an underweight position in Nvidia for now.

Read more at Nasdaq: Nvidia vs. Palantir: Which Is the Better AI Stock for 2026?