ZACKS·2025-12-02 21:01Core Insights - The article emphasizes the investment potential in NVIDIA Corporation (NVDA) and Palantir Technologies Inc. (PLTR) as key players in the upcoming AI boom leading to 2026 [1][8]. NVIDIA Corporation (NVDA) - NVIDIA reported revenues of $57 billion in fiscal Q3 2026, marking a 62% year-over-year increase and a 22% quarter-over-quarter rise [1][4]. - The data center segment saw a significant revenue increase of 66% year-over-year, reaching $51.2 billion, while gaming revenues rose by 30% to $4.3 billion [2]. - NVIDIA's management anticipates revenues for fiscal Q4 2026 to reach $65 billion, with a 2% margin of error [3]. - The company returned $37 billion to shareholders through dividends and share buybacks in the first nine months of fiscal 2026, with a net income of $31.91 billion in fiscal Q3 2026, up from $19.31 billion a year earlier [4]. Palantir Technologies Inc. (PLTR) - Palantir has expanded its U.S. commercial presence while maintaining government contracts, with U.S. commercial revenues reaching $397 million in Q3, up 121% year-over-year and 29% quarter-over-quarter [5]. - Total revenues for Palantir in Q3 reached $1.18 billion, a 63% year-over-year increase and an 18% quarter-over-quarter rise, exceeding Wall Street expectations [6]. - The company expects full-year revenues to be between $4.396 billion and $4.400 billion, with Q4 revenues projected between $1.327 billion and $1.331 billion [7]. Investment Strategy - The combination of NVIDIA's financial strength and Palantir's growth potential presents a balanced investment approach for the AI sector [8]. - NVIDIA's forward price-to-earnings (P/E) ratio is 38.94, which is more reasonable compared to Palantir's high valuation of 230.7, indicating a potential risk in Palantir's stock price during market corrections [9][11]. - Both companies hold favorable Zacks Ranks, with NVIDIA at 1 (Strong Buy) and Palantir at 2 (Buy) [12].