Palantir Technologies Inc. (PLTR) shares have risen by 74.7% in 2023, significantly outpacing NVIDIA Corporation (NVDA), which saw a 17.1% increase. Palantir’s growth has been driven by strong demand for its AI-powered platform, bolstered by a 71% year-over-year revenue increase in commercial contracts, reaching $255 million, and a 45% rise in government revenue, totaling $373 million in Q1 2023.
NVIDIA’s fiscal first-quarter sales skyrocketed by 69% year-over-year to $44.1 billion, largely due to demand for its new Blackwell chips. NVIDIA delivered AI servers to major clients like Microsoft Corporation (MSFT), while also adjusting to export restrictions impacting sales to China.
While Palantir reported a net income of $217.7 million in Q1, compared to $106.1 million the previous year, its price-to-earnings ratio stands at 226.62, making it a riskier investment compared to NVIDIA’s P/E ratio of 37.07. Analysts suggest NVIDIA may be the safer choice for stable returns in the second half of 2023.
