NVIDIA surpasses Palantir in AI investment race with faster growth and superior performance

From Nasdaq: 2025-01-07 09:34:00

NVIDIA and Palantir Technologies have seen significant stock growth due to the AI boom. NVIDIA surged 186.1% and Palantir skyrocketed 355.4% in the past year. NVIDIA leads with cutting-edge GPUs for AI, while Palantir offers AI-driven data solutions. NVIDIA’s revenue growth outpaces Palantir, making it a better investment option in the AI sector.

NVIDIA specializes in high-performance GPUs for AI systems, powering industry leaders like Adobe and Microsoft. Its hardware, software, and cloud services are essential for building AI systems at scale, driving significant revenue growth. Palantir focuses on AI-driven decision-making for commercial and government sectors, emphasizing deployment-ready AI solutions over proof-of-concept projects.

NVIDIA’s rapid revenue growth of 94% year-over-year outshines Palantir’s slower growth. NVIDIA’s trailing 12-month P/E ratio of 59.75x is lower than the industry average, while Palantir’s P/S ratio of 70.56x exceeds the industry average. Palantir’s valuation may be impacted by inconsistent profitability, making traditional metrics less meaningful.

NVIDIA is considered the better investment choice in the AI sector due to faster growth, market position, and valuation compared to Palantir. NVIDIA’s Zacks Rank of #2 (Buy) and superior performance in AI make it a more attractive option for investors seeking AI exposure. Palantir’s challenges with profitability may impact its long-term growth potential.



Read more at Nasdaq: How Does NVIDIA Stack Up Against Palantir in the AI Investment Race?