Nvidia Vs. Palantir: Which AI Stock is Worth Buying Now?

Nvidia and Palantir have seen significant sell-offs of 25% and 32% respectively. Analysis suggests that despite their strong positions in AI, Nvidia's superior revenue and growth projections make it the better investment option at this time.

Date: 12-03-2025

AI Rating: 7

Market Overview: The recent sell-off of Nvidia and Palantir stocks has prompted discussion on their investment value. Nvidia has seen a decline of 25%, while Palantir's stock has decreased by 32% from all-time highs.

Financial Performance Comparison: Looking at their financials, Nvidia has generated a staggering $130 billion in revenue over the past year, vastly overshadowing Palantir's $2.87 billion. For future projections, analysts expect Nvidia's revenue to grow to $204 billion by fiscal year 2026, a 56% increase, while Palantir's growth is anticipated at a lower 32% to $3.79 billion in 2025. This demonstrates a clear growth advantage for Nvidia.

Valuation Insights: When evaluating valuations, Nvidia trades at a forward P/E ratio of 25, which is considered attractive given its market potential, while Palantir's valuation is much higher at 144 times forward earnings. Even if Palantir meets ambitious growth expectations, its stock would still be more expensive than Nvidia's. This indicates that Nvidia offers a more compelling investment at its current price.

Conclusion: Given the significant differences in revenue, expected growth, and valuations, investors may find Nvidia to be a more appealing option than Palantir at this particular moment. Those looking to invest in AI should consider these factors carefully before making a decision.

Stocks: NVDA PLTR