Palantir vs. Nvidia: AI Investment Breakdown
Palantir Technologies (NASDAQ: PLTR) reported a 70% year-over-year revenue increase, reaching $1.4 billion with a profit margin of 43%. Meanwhile, Nvidia (NASDAQ: NVDA) is expected to report a profit growth of around 67% for its upcoming fourth quarter on February 25. Nvidia’s forward earnings valuation is significantly lower at 23 times compared to Palantir’s 106 times, which indicates that investors are paying a premium for Palantir’s software model.
Nvidia, primarily a graphics processing unit (GPU) manufacturer, benefits from the AI boom, providing essential hardware for data centers, while Palantir specializes in AI-powered data analytics software. Both companies are positioned for future growth, but analysts point out that Nvidia’s valuation is more attractive, giving it an edge as AI spending continues to rise.
