Is This AI Software Stock About to Have Its Nvidia Moment?

Core Viewpoint - Nvidia is the leading player in the AI hardware market, controlling approximately 85% to 90% of the AI chip market, while Palantir is positioning itself to become a dominant player in the AI software market, similar to Nvidia's role in hardware [1][2][4]. Group 1: Nvidia's Market Position - Nvidia has maintained a dominant position in the AI chip market for three years, despite competition from other companies [2]. - The company's control over the AI chip supply chain, along with its CUDA programming platform, has made it the preferred choice for developers and major AI companies [3]. Group 2: Palantir's Growth in AI Software - Palantir is establishing itself as a leading provider of AI software, evidenced by the rapid adoption of its Artificial Intelligence Platform (AIP) launched in April 2023 [5]. - The company experienced a 34% year-over-year increase in its customer base in Q3 2023, signing contracts worth $830 million, including 12 deals over $10 million [6]. - In the same quarter, Palantir's total customer base grew by 45%, and it signed 53 deals worth over $10 million, with new contracts totaling $2.8 billion, a 151% increase from the previous year [7]. Group 3: Market Potential and Projections - The AI software platform market is projected to generate over $18 billion in revenue by 2025, with Palantir expecting $4.4 billion in revenue for the current year, a 53% increase from last year [10]. - Palantir's growth rate is outpacing the projected 39% annual growth of the AI software platform market, indicating potential for a larger market share [11]. - If Palantir captures 50% of the AI software platform market in five years, its annual revenue could approach $50 billion, as the market is expected to reach $94 billion by 2030 [12].