"NVDA and PLTR are at nosebleed valuations and have rallied by quadruple digits over the past three years. Investors are at a crossroads and are balking at the premium they must pay. The companies undeniably have stellar fundamentals, but it's the tech industry after all. The last time something pivotal like AI dominated Wall Street was during the internet boom in the early 2000s. If you looked at some of the biggest names on exchanges back then, you wouldn't recognize half of them."
"However, Nvidia could become the Apple of AI, providing hardware and maintaining its dominance. In contrast, Palantir may dominate AI software just as Google managed to maintain its search engine dominance for decades. Let's take a look at the likelihood of each of those scenarios and find out whether or not PLTR stock or NVDA stock is better today. Nvidia (NVDA) Starting with the biggest of the two, Nvidia looks expensive on paper, but is quite cheap compared to Palantir."
Nvidia and Palantir have both delivered quadruple-digit rallies over the past three years and have driven much of the AI market surge. Both trade at very high valuations that have investors hesitant to pay premiums despite strong fundamentals. Nvidia’s strengths lie in AI hardware, where its chips power training farms and data centers and remain best in class, while some competitors and custom-chip makers have narrowed the gap. Palantir focuses on AI software and has potential to dominate that layer. Nvidia trades below 40 times forward FY2026 earnings and about 28 times forward FY2027 earnings. Companies continue investing heavily in AI and expanding data-center capacity.
Read at 24/7 Wall St.
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