Should You Forget Palantir and Buy This Artificial Intelligence (AI) Stock Instead?

Group 1: Palantir Technologies - Palantir Technologies has seen significant stock gains of over 820% due to its improving position in the AI chip market [1] - Despite recent stock pullbacks, investors who bought Palantir shares a couple of years ago still hold substantial gains, which may attract growth investors [2] - The company currently trades at a high valuation with a price-to-sales (P/S) multiple of 66 and a trailing price-to-earnings (P/E) multiple of 410, indicating it may not be an immediate buy [3][4] Group 2: Nvidia - Nvidia's stock has declined over 28% in 2025 amid broader market sell-offs and concerns about AI infrastructure spending, despite its strong growth [5] - The company reported a 130% year-over-year increase in non-GAAP earnings for fiscal 2025, making its trailing P/E ratio of 33 appear attractive compared to the tech sector average of 36 [6] - Nvidia is experiencing extraordinary demand for its Blackwell AI graphics cards, with $11 billion in sales in the previous quarter, marking the fastest product ramp in its history [7] - Blackwell processors contributed nearly a third of Nvidia's data center revenue in the fiscal fourth quarter of 2025, despite being on sale for only part of the quarter [8] - Nvidia has secured 70$43 billion in revenue for the current quarter, representing a 65% increase from the previous year [10] - Nvidia's growth potential extends beyond AI, with significant opportunities in automotive and cloud gaming markets, contributing to a long-term addressable market of approximately $1.7 trillion [12][13] - Investors seeking an attractively valued AI stock should consider Nvidia due to its substantial growth opportunities [14]