Should You Forget Palantir and Buy This Artificial Intelligence (AI) Stock Instead?
From Nasdaq: 2025-04-12 03:45:00
Palantir Technologies (NASDAQ: PLTR) has seen impressive gains of over 820% in recent years due to its success in the AI chip market. Despite recent pullbacks, long-term investors still hold significant profits. The current valuation may not be cheap, but the potential for growth in the AI software market could justify it.
Nvidia (NASDAQ: NVDA) has experienced a stock price decline of over 28% in 2025, despite strong growth. The company’s non-GAAP earnings increased by 130% in fiscal 2025, making its trailing P/E ratio of 33 appealing. Analysts anticipate a 51% earnings jump this fiscal year, driven by high demand for Blackwell AI graphics cards.
Nvidia’s growth prospects remain strong, with significant demand for Blackwell processors and a large share of TSMC’s chip-packaging capacity secured. Revenue guidance for the current quarter suggests a 65% increase year-over-year. In addition to AI, Nvidia’s opportunities in automotive and cloud gaming markets could drive future growth.
Investors considering Nvidia should weigh the company’s potential against other top stock picks. The Motley Fool Stock Advisor team has identified 10 stocks with significant growth potential, excluding Nvidia. Past recommendations have yielded substantial returns, highlighting the value of expert advice in stock selection.
Read more at Nasdaq: Should You Forget Palantir and Buy This Artificial Intelligence (AI) Stock Instead?