NVIDIA has stronger growth potential than Palantir in the AI market

From Nasdaq: 2025-03-26 15:05:00

In the past year, NVIDIA Corporation and Palantir Technologies Inc. have become top trading stocks on Wall Street due to advancements in artificial intelligence (AI). NVIDIA’s dominance in data center GPUs has led to impressive financial results, while Palantir’s AI platform has shown growth potential with increasing demand from clients.

NVIDIA’s strong position in the GPU market and high demand for advanced chips like Blackwell chips with faster AI interface give it strong growth potential. The company’s solutions are in demand for developing autonomous vehicle systems, driving increased revenue projections.

Palantir has also shown promising growth with revenue increasing 29% and non-GAAP net income surging 64% in 2024. The company’s leadership in AI-driven process mining and increasing demand for its AI Platform indicate strong growth possibilities.

Despite Palantir’s positives, NVIDIA has the upper hand with insane demand for its chips and extensive AI computing solutions. NVIDIA’s growth potential is much stronger, with sales estimated to soar 65% year over year in the first quarter, outpacing Palantir’s revenue growth projections.

Brokers have more faith in NVIDIA than Palantir, reflected in higher short-term price targets for NVIDIA. NVIDIA also has a lower price/earnings ratio, making it a more affordable investment option compared to Palantir.

With the rampant demand for AI, machine learning, and IoT, a semiconductor stock recommended by Zacks Investment Research is poised for growth. Global semiconductor manufacturing is projected to explode from $452 billion in 2021 to $803 billion by 2028, presenting a significant opportunity for investors.



Read more at Nasdaq: Which AI Stock, NVIDIA or Palantir, Has More Upside and Is a Buy?