Investment Comparison: Palantir vs Nvidia
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Should l Buy NVDA?
Source: Fool
- Sustainable Software Revenue: Palantir's AI-powered data analytics software provides long-lasting subscription revenue, akin to Microsoft's Office platform, ensuring a steady cash flow that enhances the stability and attractiveness of its business model.
- Growth Rate Comparison: Palantir reported a 70% year-over-year revenue increase to $1.4 billion with a 43% profit margin, showcasing strong performance in profitability and market demand, slightly outperforming Nvidia's growth expectations.
- Valuation Discrepancy: Palantir's price-to-earnings ratio stands at 106, significantly higher than Nvidia's 23, indicating that investors must pay a premium of up to 360% to own Palantir's stock, reflecting high market expectations for its future growth.
- Market Outlook: While Nvidia's stock is relatively cheaper and expected to benefit from a surge in AI spending by 2026, Palantir's business model and sustainable revenue potential still make it attractive for long-term investment, requiring investors to balance short-term and long-term gains.
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Analyst Views on NVDA
Wall Street analysts forecast NVDA stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for NVDA is 264.97 USD with a low forecast of 200.00 USD and a high forecast of 352.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
41 Analyst Rating
39 Buy
1 Hold
1 Sell
Strong Buy
Current: 185.410
Low
200.00
Averages
264.97
High
352.00
Current: 185.410
Low
200.00
Averages
264.97
High
352.00
About NVDA
NVIDIA Corporation is a full-stack computing infrastructure company. The Company is engaged in accelerated computing to help solve the challenging computational problems. The Company’s segments include Compute & Networking and Graphics. The Compute & Networking segment includes its Data Center accelerated computing platforms and artificial intelligence (AI) solutions and software; networking; automotive platforms and autonomous and electric vehicle solutions; Jetson for robotics and other embedded platforms, and DGX Cloud computing services. The Graphics segment includes GeForce GPUs for gaming and PCs, the GeForce NOW game streaming service and related infrastructure, and solutions for gaming platforms; Quadro/NVIDIA RTX GPUs for enterprise workstation graphics; virtual GPU software for cloud-based visual and virtual computing; automotive platforms for infotainment systems, and Omniverse Enterprise software for building and operating industrial AI and digital twin applications.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Nvidia Stock Projected to Reach $300
- Price Projection: Nvidia's current stock price is around $175, and to reach $300 by year-end, it would need to rise over 70%, a target that appears realistic given the company's growth potential and market conditions.
- Surge in Capital Expenditure: Meta Platforms reported $72.2 billion in capital expenditures for 2025, with expectations to increase this to between $115 billion and $135 billion in 2026, while Alphabet plans to spend $175 billion to $185 billion in 2026, driving significant demand for Nvidia GPUs and enhancing its market position.
- Earnings Expectations: With Nvidia's current price-to-earnings ratio at 40, achieving a stock price of $300 requires at least $7.50 in earnings per share, and analysts project $7.66 for FY 2027, providing strong support for the stock's upward trajectory.
- Market Opportunities: As investments in data centers continue to rise, Nvidia stands to benefit from this trend, particularly in 2026, where it is expected to experience dual earnings growth, further solidifying its leadership in the AI sector.
See More
Montage Technology Shares Surge 60% on Hong Kong Debut, Raising $902 Million
- Strong Debut Performance: Montage Technology's shares surged approximately 60% on their Hong Kong debut, climbing from the offering price of HK$106.89 to HK$171, indicating robust market demand for its high-performance semiconductors and reinforcing its position in the cloud computing and AI sectors.
- Significant Fundraising: The IPO raised $902 million, reflecting strong investor interest in Chinese AI and semiconductor firms, particularly as the public tranche was oversubscribed by more than 700 times and the international offering was nearly 38 times covered.
- Intensifying Market Competition: Despite Montage's successful listing, competition is heating up, with Huawei and its chip unit HiSilicon holding a leading share of the domestic market, suggesting that the push for self-sufficiency will lead to fiercer rivalry within the industry.
- Evolving Policy Landscape: As the Chinese government intensifies efforts for self-sufficiency in advanced chips, the recent approval for Nvidia's H200 imports under specific conditions highlights the uncertainty in policy that could impact market dynamics.
See More
AMD Reports Strong Earnings but Growth Rate Slows
- Earnings Highlights: AMD's recent quarterly earnings report revealed a 34% year-over-year revenue increase to $10.3 billion, although the growth rate has declined from 36% in the previous quarter, indicating strong market performance following the launch of AI chips.
- Future Outlook: The company anticipates a further decline in growth rate to 32% for the upcoming quarter, even with $100 million in Instinct MI308 chip sales to China, raising concerns among investors about its long-term growth prospects.
- Market Competition: While AMD's growth rate above 30% remains impressive, it pales in comparison to Nvidia's 60% growth rate, which could diminish AMD's market appeal and investment attractiveness.
- Investment Risks: With AMD trading at approximately 80 times its earnings, the slowdown in growth may expose investors to short-term volatility risks, particularly if market conditions worsen, necessitating a reassessment of its investment value.
See More
Investment Comparison: Palantir vs Nvidia
- Sustainable Software Revenue: Palantir's AI-powered data analytics software provides long-lasting subscription revenue, akin to Microsoft's Office platform, ensuring a steady cash flow that enhances the stability and attractiveness of its business model.
- Growth Rate Comparison: Palantir reported a 70% year-over-year revenue increase to $1.4 billion with a 43% profit margin, showcasing strong performance in profitability and market demand, slightly outperforming Nvidia's growth expectations.
- Valuation Discrepancy: Palantir's price-to-earnings ratio stands at 106, significantly higher than Nvidia's 23, indicating that investors must pay a premium of up to 360% to own Palantir's stock, reflecting high market expectations for its future growth.
- Market Outlook: While Nvidia's stock is relatively cheaper and expected to benefit from a surge in AI spending by 2026, Palantir's business model and sustainable revenue potential still make it attractive for long-term investment, requiring investors to balance short-term and long-term gains.
See More
Investment Value Comparison: Nvidia vs. Palantir
- Business Model Comparison: Palantir's AI-powered data analytics software offers a sustainable revenue stream akin to Microsoft's Office platform, while Nvidia's GPU business may face growth slowdowns in the future as computing capacity could reach saturation post-2030, leading to revenue growth reliant on replacing outdated equipment.
- Financial Performance: Palantir reported a 70% year-over-year revenue increase to $1.4 billion with a 43% profit margin, showcasing strong profitability; in contrast, Nvidia's profit margin hovers in the mid-50% range, slightly ahead, yet both companies exhibit blistering growth rates.
- Valuation Discrepancy: Palantir's price-to-earnings ratio stands at 106 times, significantly higher than Nvidia's 23 times, indicating that Palantir's earnings would need to rise by 360% to match Nvidia's valuation, making the cost of investing in Palantir appear excessive.
- Market Outlook: While Nvidia is viewed as the better investment amid surging AI spending, the market sentiment is oddly bearish on its stock, presenting a prime opportunity to buy Nvidia shares, especially ahead of its upcoming fourth-quarter earnings report.
See More
Amazon Increases AI Investment to $200 Billion
- Capital Expenditure Surge: Amazon has announced a capital expenditure increase to $200 billion for 2023, with CEO Andy Jassy stating the company is monetizing capacity as quickly as possible, which may exert pressure on short-term financial performance.
- Strong Chip Performance: The installation of 1.4 million Tranium2 AI chips in Amazon's data centers has resulted in an annual revenue run rate of $10 billion, growing over 100% year-on-year, indicating robust growth potential in AI infrastructure.
- Significant Cost Advantage: Amazon's Tranium chips offer 30% to 40% better performance-per-dollar compared to Nvidia's GPUs, reducing operational costs for AWS customers and potentially attracting more AI companies to choose Amazon as their infrastructure provider.
- Intensifying Market Competition: As companies like Amazon increasingly rely on their own AI chips, Nvidia's market dominance is being challenged, which could impact its profit margins, especially as competition in the AI accelerator market intensifies.
See More
Nvidia Stock Projected to Reach $300
- Price Projection: Nvidia's current stock price is around $175, and to reach $300 by year-end, it would need to rise over 70%, a target that appears realistic given the company's growth potential and market conditions.
- Surge in Capital Expenditure: Meta Platforms reported $72.2 billion in capital expenditures for 2025, with expectations to increase this to between $115 billion and $135 billion in 2026, while Alphabet plans to spend $175 billion to $185 billion in 2026, driving significant demand for Nvidia GPUs and enhancing its market position.
- Earnings Expectations: With Nvidia's current price-to-earnings ratio at 40, achieving a stock price of $300 requires at least $7.50 in earnings per share, and analysts project $7.66 for FY 2027, providing strong support for the stock's upward trajectory.
- Market Opportunities: As investments in data centers continue to rise, Nvidia stands to benefit from this trend, particularly in 2026, where it is expected to experience dual earnings growth, further solidifying its leadership in the AI sector.
See More
Montage Technology Shares Surge 60% on Hong Kong Debut, Raising $902 Million
- Strong Debut Performance: Montage Technology's shares surged approximately 60% on their Hong Kong debut, climbing from the offering price of HK$106.89 to HK$171, indicating robust market demand for its high-performance semiconductors and reinforcing its position in the cloud computing and AI sectors.
- Significant Fundraising: The IPO raised $902 million, reflecting strong investor interest in Chinese AI and semiconductor firms, particularly as the public tranche was oversubscribed by more than 700 times and the international offering was nearly 38 times covered.
- Intensifying Market Competition: Despite Montage's successful listing, competition is heating up, with Huawei and its chip unit HiSilicon holding a leading share of the domestic market, suggesting that the push for self-sufficiency will lead to fiercer rivalry within the industry.
- Evolving Policy Landscape: As the Chinese government intensifies efforts for self-sufficiency in advanced chips, the recent approval for Nvidia's H200 imports under specific conditions highlights the uncertainty in policy that could impact market dynamics.
See More
AMD Reports Strong Earnings but Growth Rate Slows
- Earnings Highlights: AMD's recent quarterly earnings report revealed a 34% year-over-year revenue increase to $10.3 billion, although the growth rate has declined from 36% in the previous quarter, indicating strong market performance following the launch of AI chips.
- Future Outlook: The company anticipates a further decline in growth rate to 32% for the upcoming quarter, even with $100 million in Instinct MI308 chip sales to China, raising concerns among investors about its long-term growth prospects.
- Market Competition: While AMD's growth rate above 30% remains impressive, it pales in comparison to Nvidia's 60% growth rate, which could diminish AMD's market appeal and investment attractiveness.
- Investment Risks: With AMD trading at approximately 80 times its earnings, the slowdown in growth may expose investors to short-term volatility risks, particularly if market conditions worsen, necessitating a reassessment of its investment value.
See More
Investment Comparison: Palantir vs Nvidia
- Sustainable Software Revenue: Palantir's AI-powered data analytics software provides long-lasting subscription revenue, akin to Microsoft's Office platform, ensuring a steady cash flow that enhances the stability and attractiveness of its business model.
- Growth Rate Comparison: Palantir reported a 70% year-over-year revenue increase to $1.4 billion with a 43% profit margin, showcasing strong performance in profitability and market demand, slightly outperforming Nvidia's growth expectations.
- Valuation Discrepancy: Palantir's price-to-earnings ratio stands at 106, significantly higher than Nvidia's 23, indicating that investors must pay a premium of up to 360% to own Palantir's stock, reflecting high market expectations for its future growth.
- Market Outlook: While Nvidia's stock is relatively cheaper and expected to benefit from a surge in AI spending by 2026, Palantir's business model and sustainable revenue potential still make it attractive for long-term investment, requiring investors to balance short-term and long-term gains.
See More
Investment Value Comparison: Nvidia vs. Palantir
- Business Model Comparison: Palantir's AI-powered data analytics software offers a sustainable revenue stream akin to Microsoft's Office platform, while Nvidia's GPU business may face growth slowdowns in the future as computing capacity could reach saturation post-2030, leading to revenue growth reliant on replacing outdated equipment.
- Financial Performance: Palantir reported a 70% year-over-year revenue increase to $1.4 billion with a 43% profit margin, showcasing strong profitability; in contrast, Nvidia's profit margin hovers in the mid-50% range, slightly ahead, yet both companies exhibit blistering growth rates.
- Valuation Discrepancy: Palantir's price-to-earnings ratio stands at 106 times, significantly higher than Nvidia's 23 times, indicating that Palantir's earnings would need to rise by 360% to match Nvidia's valuation, making the cost of investing in Palantir appear excessive.
- Market Outlook: While Nvidia is viewed as the better investment amid surging AI spending, the market sentiment is oddly bearish on its stock, presenting a prime opportunity to buy Nvidia shares, especially ahead of its upcoming fourth-quarter earnings report.
See More
Amazon Increases AI Investment to $200 Billion
- Capital Expenditure Surge: Amazon has announced a capital expenditure increase to $200 billion for 2023, with CEO Andy Jassy stating the company is monetizing capacity as quickly as possible, which may exert pressure on short-term financial performance.
- Strong Chip Performance: The installation of 1.4 million Tranium2 AI chips in Amazon's data centers has resulted in an annual revenue run rate of $10 billion, growing over 100% year-on-year, indicating robust growth potential in AI infrastructure.
- Significant Cost Advantage: Amazon's Tranium chips offer 30% to 40% better performance-per-dollar compared to Nvidia's GPUs, reducing operational costs for AWS customers and potentially attracting more AI companies to choose Amazon as their infrastructure provider.
- Intensifying Market Competition: As companies like Amazon increasingly rely on their own AI chips, Nvidia's market dominance is being challenged, which could impact its profit margins, especially as competition in the AI accelerator market intensifies.
See More
