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Palantir Technologies (NASDAQ: PLTR) is currently trading at 109 times its trailing revenue, contrasting sharply with Nvidia (NASDAQ: NVDA) which trades at 24 times revenue. As of December 4, 2025, the S&P 500 index has returned 75%, while the Nasdaq-100 gained 118% since OpenAI launched ChatGPT three years ago. However, Nvidia’s value has dramatically increased, rising over tenfold compared to Palantir’s twofold increase during the same period.
Palantir’s revenue stands at $3.9 billion, while Nvidia’s is significantly higher at $187 billion. Palantir has been experiencing a 40% year-over-year growth rate in government contracts, but political cycles pose risks to future revenue stability. Meanwhile, Nvidia faces competition from major clients like Amazon and Microsoft, who are developing their own AI chips. Analysts suggest that despite the challenges, Nvidia’s valuation may offer a better risk/reward balance for new investors than Palantir’s.
Despite both stocks being highly valued for a future of AI, investors may find better opportunities in the broader ecosystem rather than choosing between these two expensive options.
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