NVIDIA and Palantir Show Growth Potential Amid AI Expansion

NVIDIA and Palantir are vying for top positions in AI investments. NVIDIA's robust revenue growth and market dominance outweighs Palantir's, offering more compelling investment potential for investors looking for AI stocks.

Date: 27-03-2025

AI Rating: 7

Earnings Per Share (EPS)
NVIDIA reported adjusted earnings of $2.99 per share, reflecting a significant 130% increase compared to the previous year. In contrast, Palantir reported a non-GAAP net income of $0.41 per share, marking a 64% increase. This shows robust profitability for both companies, but NVIDIA significantly leads in EPS growth.

Revenue Growth
NVIDIA's revenues surged by 114% to $130 billion, while Palantir's revenues rose by 29% to $2.8 billion. The striking difference indicates NVIDIA's strong market position and performance, particularly in the GPU segment. Analysts project NVIDIA's sales to increase by 65% year over year in the coming quarter, significantly outpacing Palantir's estimated growth rate of 31% for the year.

Market Position
NVIDIA’s dominance in the data center GPU market—with a 98% share—definitely paints a brighter growth picture than Palantir. As leading tech companies like Microsoft and Alphabet incorporate NVIDIA's Blackwell chips into their products, demand appears robust.

Stock Valuation
NVIDIA trades at a price/earnings ratio of 27.41, which is considerably lower than Palantir's ratio of 173.56, suggesting that NVIDIA presents a more attractive valuation relative to its earnings potential. This wide discrepancy in valuations may influence investor sentiment favorably toward NVIDIA.

Overall, NVIDIA presents a much stronger investment case than Palantir in the rapidly evolving AI market, with its escalated revenue and earnings prospects fundamentally supported by market demand and improved chipset technology.

Stocks: NVDA PLTR MSFT GOOGL INTC