Nvidia and Palantir Stocks: Dips Worth Buying?

Nvidia and Palantir have seen their stock values fall more than 20% recently. Despite Nvidia's expected revenue growth of 65% in Q1, concerns about slowing growth linger. Palantir's future looks uncertain with anticipated defense budget cuts impacting its largest customer, leading to less bullish sentiment for the stock.

Date: 24-03-2025

AI Rating: 5

Nvidia and Palantir's Stock Performance

Nvidia's stock has experienced a significant downturn after a robust year where it soared 171%. In its latest quarter, the company announced an impressive revenue growth of 78% year over year and a remarkable 71% increase in adjusted earnings per share (EPS). However, despite this growth, investors express concern over the slowing growth rate and declining gross margins.

On the contrary, Palantir saw its stock skyrocketing by 340% but has recently faced a nearly 30% drop from its peak. While Palantir's Q4 results did not cause this decline, investor anxiety arose from CEO Alex Karp's planned share sales and looming U.S. defense budget cuts, significantly affecting its primary customer. This situation has led to decreasing confidence in Palantir’s potential revenue growth.

Key Metrics That Impact Stock Prices

For Nvidia, the key data points are:

Revenue Growth: Q4 revenue growth of 78% year over year, with a prediction of 65% revenue growth in Q1.
EPS: Adjusted EPS rose 71% in Q4.
Gross Margins: Declining gross margins reported, which may concern investors.

While Nvidia shows strong fundamentals, Palantir lacks the same momentum. Its expected full-year revenue growth is only 31% for 2025, down from 38% in 2024, which indicates a declining growth trajectory.

Investment Sentiments

Overall, the distinct trajectories of these stocks signal different investor sentiments. Nvidia's fundamentals appear more robust despite modest caution about growth rates, which indicates a more positive outlook and a likely better investment opportunity. Conversely, Palantir is facing headwinds with potential revenue reductions due to anticipated budget cuts and uncertainty surrounding its largest customer, the U.S. government, impacting its stock outlook negatively.

Stocks: NVDA PLTR