Stock Analysis: Nvidia vs. Palantir
Nvidia (NASDAQ: NVDA) and Palantir Technologies (NASDAQ: PLTR) are leading players in the artificial intelligence sector. Nvidia specializes in GPUs, which are essential for generative AI workloads. The company maintains a dominant position in the data center market, with a projected average price target of $252, up from $185, as analysts widely rate it as a strong buy. In contrast, Palantir, known for its AI data analytics software, has an average price target of $188, slightly above its current trading price of $177, placing it in the hold category among analysts.
The valuation metrics highlight a significant difference: Palantir is trading at 414 times trailing earnings compared to Nvidia’s 46 times. Looking ahead, Palantir’s valuation continues to reflect expected rapid growth, trading at 175 times its FY 2026 earnings, while Nvidia’s forward earnings valuation stands at just 24 times its FY 2027 earnings. This suggests Nvidia is better positioned for immediate growth potential, while Palantir’s stock may remain stagnant as it aligns with its higher price tag.
