Nvidia (NVDA 1.92%)) And PALANTOUT Technologies (Pltr 5.53%)) Delivered formidable gains last year when the actions of the two companies have made a remarkably crisis thanks to rapidly growing demand for their hardware and software solutions focused on artificial intelligence (AI). But 2025 turns out to be different for these red -heated growth stocks.
While the NVIDIA action fell almost 14% in 2025, Palantant has lost a lot of ground in recent days after a solid start to the year. However, it cannot be refused that the two companies are on the right track to benefit from lucrative final markets. Although NVIDIA’s recent results suggest that rapidly growing IA equipment demand continues to be a key growth engine for the company, Palantant continues to attend an improvement in its growth profile thanks to the widening of the need for generative AI software.
However, if you were to buy one of these two AI actions at the moment, on which you should put your money? Discover.
The case for NVIDIA
The market has doubted Nvidia’s ability to maintain its healthy growth thanks to a variety of reasons ranging from export controls on its IA graphic processing units (GPU) to a potential slowdown in IA infrastructure expenditure to threaten other types of chips such as personalized processors that are adopted by technology giants in a supply of reduction in their expenses.
However, the latest quarterly results of the company clearly indicate that the demand for ia chips remains healthy. Nvidia’s turnover in the fourth quarter of the 2025 financial year (which ended on January 26) increased by 78% from one year to the next for a record of $ 39.3 billion. The adjusted profits also increased by $ 71% to $ 0.89 per share. The two figures were ahead of Wall Street’s expectations.
The guidelines indicate that Nvidia is on the right track to maintain its healthy momentum. It provides $ 43 billion in income during the current quarter, which would result in an increase of 65% compared to the period of the previous year. However, NVIDIA could exceed its own expectations when it increases the supply of its latest generation Blackwell processors to support the demand of rapidly growing customers.
More importantly, Blackwell can help Nvidia maintain its dominant position in the AI fleas market thanks to its versatility. Management highlighted the last conference call for the results that “Blackwell addresses the entire AI market, pre-training, after training in the cloud, on site, to the company.”
Nvidia also stresses that the arrival of low -cost reasoning models such as DEEPSEEK R1 is likely to considerably increase computer demand. This augurs well for the company’s blackwell architecture, which, according to NVIDIA, is capable of processing requests 25 times more quickly at a cost 20 times lower compared to the H100 processor of previous generation. As such, it will not be surprising to see Nvidia maintain its dominant share of approximately 85% on the ia flea market in the future.
This is also probably the reason why analysts have increased their expectations in terms of income for the company for the current and the next two years.
NVDA income estimates for the current year data by Ycharts
The benefits of the company, on the other hand, should increase by 50% during the current financial year, despite the short -term margin pressure that it will face while increasing the production of its Blackwell processors. Nvidia stresses that its adjusted gross margin will return to the middle of the mid -70% later during the fiscal year from the 70% 70% range once Blackwell production is fully increased.
So, don’t be surprised to see Nvidia’s revenues increase at a faster pace and exceed analysts’ expectations as the year progresses.
The case for Palantant Technologies
Palantant Technologies is one of the main providers of AI software platforms, a market that should become a long-term massive. The IDC market study company estimates that the global IA software platform market could increase from $ 28 billion in 2023 to $ 153 billion in 2028 at an annual rate of more than 40%.
This fast growing market already has a positive impact on Palantir’s performance. The growth of the company’s income accelerated at 29% in 2024, compared to an increase of 17% observed in 2023. Since the first row of Palantant reached a little less than $ 2.9 billion last year, it is easy to see that the company still has a lot of space for growth in the future, given the potential size of the AI software platforms.
What deserves to be noted here is that the rhythm to which Palanter now signals new contracts is equal to the pace to which the AI software platform market should grow, according to IDC. The company declared a 40% increase on the other of its remaining transaction value (RDV) in the fourth quarter from 2024 to 5.4 billion dollars.
It was a significant improvement in relation to the increase of 22% from one year to the other of this metric in the third quarter. The Palantant’s appointment refers to the total value of the company’s dissatisfied contracts at the end of a quarter. Thus, the faster growth of this metric is proof that the company now signals contracts at a faster rate than it achieves, paving the way for revenues and growth in stronger profits in the future.
There is a good chance that the Palant’s revenue pipeline continues to improve in the future, because the new customers that the company brings on board tend to sign greater contracts, thanks to the efficiency gains provided by its artificial intelligence platform (AIP). The overall number of Palantir customers increased by 43% from one year to the next during the previous quarter. While these customers are starting to deploy AIP to palanting in more areas, the company should witness an improvement in its appointment.
In addition, higher expenses of existing customers contribute to an improvement in the margins of palantant. Its adjusted operating margin increased by 11 percentage points from one year to the next in the last quarter. Unsurprisingly, the adjusted profits from Palantir increased 64% in 2024 to $ 0.41 per share. Analysts expect Palantant to maintain strong growth in two -digit profits in the future, but do not be surprised to see him exceed these expectations thanks to his income pipeline and his margin improvements.
PLTr EPS Estimates for the current exercise data by Ycharts
The verdict
While NVIDIA allows investors to benefit from the AI’s lucrative material market, Palantir allows them to make the most of the rapid adoption of the adoption of generative AI software. Thus, the two companies could find a place in a diverse portfolio. However, the problem with Palantant is that he is negotiating a large bonus compared to Nvidia, a company that develops at a faster rate.
NVDA PE ratio data by Ycharts
The expensive evaluation of Palantant has aroused concerns that the stock may have taken ahead and is one of the reasons why it has been significantly brought back in recent times. Unsurprisingly, analysts expect Palantant to provide only 15% of earnings in the next year according to its median price target of $ 97. Nvidia, on the other hand, should jump 51% in the next 12 months, according to analysts.
This will not be surprising, because the cheaper valuation of Nvidia and the faster profits growth that it should offer this year could lead the market to reward it with more increase compared to Palantir, which allows investors to more easily decide which of these two AI actions is a better purchase at the moment.
