Billionaires selling Palantir stock, buying Nvidia due to growth potential

From Nasdaq: 2024-11-24 03:40:00

Shares of Palantir Technologies (NYSE: PLTR) have surged 275% this year, driven by robust demand for its Artificial Intelligence Platform (AIP). Hedge fund billionaires like Ken Griffin and David Shaw sold Palantir stock in the third quarter but bought shares of Nvidia (NASDAQ: NVDA), a chipmaker with promising growth potential.

Palantir specializes in data analytics with software products like Foundry and Gotham, integrated with its AIP. Recent reports show Palantir outscoring major competitors in AI platforms. Financially, Palantir reported strong third-quarter results with a 30% revenue increase, driven by unprecedented demand for its AIP.

Nvidia, known for its GPUs in AI chips, is more than just a chipmaker. The company excels in AI networking equipment and software services, offering a competitive edge in AI applications. Nvidia reported impressive third-quarter financials, with a 94% revenue increase and strong guidance for the fourth quarter.

While Palantir’s valuation has raised concerns, Wall Street expects Nvidia’s adjusted earnings to grow at a faster rate through 2025. This makes Nvidia a more reasonable investment in comparison. Nvidia’s competitive advantages and financial performance position it as a better buy among AI stocks. Investors may find Nvidia’s growth potential more appealing than Palantir’s high valuation.

Investors looking for lucrative opportunities in AI stocks should consider Nvidia over Palantir. With strong financial performance, competitive advantages, and reasonable valuation, Nvidia emerges as the preferable choice for potential growth. Consider the long-term prospects of both companies before making investment decisions.



Read more at Nasdaq: Billionaires Are Selling Palantir Stock and Buying an AI Stock an Analyst Says “Will Be the Most Important Company to Our Civilization”