The Motley Fool·2025-04-09 07:31Nvidia - Nvidia's investment thesis is based on its dominance in accelerated computing, positioning it well to monetize artificial intelligence (AI) through its highly sought-after graphics processing units (GPUs) [2][4] - The company enhances its data center hardware with a comprehensive suite of software development tools called CUDA, which is unmatched by other chipmakers [3] - Nvidia reported a 78% increase in revenue to $39 billion in the fourth quarter, driven by strong demand for AI infrastructure, with non-GAAP earnings rising 71% to $0.89 per diluted share [4] - Wall Street anticipates a 51% increase in Nvidia's adjusted earnings for fiscal 2026, supported by a projected 36% annual growth in AI spending through 2030 [5] - The median target price for Nvidia among analysts is $175 per share, indicating a potential upside of approximately 73% from the current price of around $101 [10] Palantir Technologies - Palantir's investment thesis focuses on its unique capability to operationalize AI for clients, helping them build and deploy AI applications effectively [6] - The company reported a 36% revenue increase to $828 million in the fourth quarter, with a 43% rise in customers to 711 and a 20% increase in average spend per existing customer [8] - Wall Street expects Palantir's adjusted earnings to grow by 37% in 2025, although this estimate may be conservative given IDC's forecast of 40% annual growth in AI platform spending through 2028 [9] - The median target price for Palantir among analysts is $96 per share, suggesting an upside of about 18% from the current price of around $81 [10]