Nvidia(US:NVDA) ZACKS·2025-01-22 21:06Core Insights - The global AI market is projected to grow from $184.1 billion in 2022 to $243.7 billion in 2023, indicating a significant upward trend in AI adoption and investment [1] Group 1: NVIDIA Corporation (NVDA) - NVIDIA holds over two-thirds of the GPU market, which is expected to expand from $75.77 billion in 2022 to $101.54 billion in 2023, showcasing its competitive advantage in the AI sector [2] - The demand for NVIDIA's next-generation Blackwell chips is increasing, while the Hopper chips maintain steady demand, reflecting strong market acceptance [3] - Blackwell chips are reported to run AI inference 30 times faster and are 25 times more energy efficient than older models, contributing to a rise in shipments and customer confidence [4] - NVIDIA's earnings per share (EPS) is projected to increase by 46.3% year-over-year, with a Zacks Consensus Estimate of $2.94, driven by the growing demand for its chips [5] Group 2: Palantir Technologies Inc. (PLTR) - Palantir is the second-largest player in the AI platform software market, following Microsoft, and is well-positioned for growth as AI platform spending is expected to rise significantly through 2028 [6] - The company has expanded its government and commercial customer base due to high demand for its AI platform, Artificial Intelligence Platform (AIP), which automates tasks through AI integration [7][8] - Palantir's net-dollar retention rate has improved, and its EPS is estimated to rise by 31% year-over-year, with a Zacks Consensus Estimate of $0.38, indicating strong revenue growth potential [9] Group 3: Investment Outlook - Both NVIDIA and Palantir are identified as strong investment opportunities for 2025, with NVIDIA's GPU market dominance and Palantir's expanding commercial customer base contributing to their growth potential [10] - Investors are encouraged to consider both stocks to maximize growth potential, as they hold a Zacks Rank 2 (Buy) [11]