Hedge fund billionaires buy Nvidia, sell Palantir; Nvidia with strong growth potential.

From Nasdaq: 2025-01-21 04:05:00

In the third quarter, hedge fund billionaires Ken Griffin’s Citadel and David Shaw’s D.E. Shaw bought shares of Nvidia while selling shares of Palantir Technologies. Nvidia reported strong financial results in the third quarter of fiscal 2025, with sales increasing 94% to $35 billion and non-GAAP earnings doubling to $0.81 per diluted share.

Wall Street expects Nvidia’s adjusted earnings to grow by 39% annually through fiscal 2027, making the current valuation reasonable at 52 times adjusted earnings. Analysts believe that Blackwell GPUs and autonomous robotics present significant growth opportunities for Nvidia, potentially surpassing consensus sales and earnings estimates.

On the other hand, Palantir Technologies reported third-quarter results that beat expectations, with revenue increasing 30% to $725 million and non-GAAP net income rising 42% to $0.10 per diluted share. The company raised its full-year guidance, projecting a 26% sales growth in the fourth quarter, outperforming Wall Street’s 22% growth estimate.

Despite Palantir’s strong performance, the stock trades at 205 times adjusted earnings, which is deemed excessive for a company expecting 25% annual earnings growth through 2027. Investors are advised to avoid Palantir until the stock price decreases significantly, as current shareholders should consider reducing large positions due to the high valuation.

Nvidia and Palantir are both key players in the artificial intelligence economy, attracting attention from hedge fund billionaires. While Nvidia shows strong growth potential and reasonable valuation, Palantir’s high stock price relative to earnings growth suggests caution is warranted for investors. It’s essential to consider the long-term outlook and market dynamics before making investment decisions.



Read more at Nasdaq: Nvidia Stock vs. Palantir Stock: Wall Street Billionaires Buy One and Sell the Other