Yahoo Finance·2025-12-06 17:00Financial Performance - Nvidia reported $57 billion in revenue for the third quarter of fiscal 2026, representing a 62% year-over-year increase, with a record sequential jump of $10 billion [3] - Earnings surged by 67%, and gross margins reached 73.6%, indicating strong demand and pricing power [3] - Nvidia has $60.6 billion in cash and $22 billion in free cash flow, with a low debt-to-equity ratio of 0.06 [1] Growth Prospects - Analysts expect Nvidia to achieve 56% earnings growth in fiscal 2026 and 59% growth in fiscal 2027, driven by accelerated computing and AI advancements [1] - The upcoming Vera Rubin platform, launching in 2026, will introduce seven new chips, further enhancing performance [2] - Nvidia's Data Center segment generated $51 billion, up 66%, with cloud providers sold out of Nvidia hardware [3] Market Position - Nvidia is valued at $4.4 trillion and is recognized as the leader in AI infrastructure, with NVDA stock returning over 21,695% over the last decade and up 32% year-to-date [4] - Wall Street analysts have a strong bullish outlook on NVDA stock, with an average target price suggesting a potential upside of 38% [6] Comparison with Palantir - Palantir, valued at $407.4 billion, reported 63% revenue growth to $1.18 billion, with significant contributions from its government segment [8] - Palantir's U.S. commercial division is its fastest-growing segment, surging 121% year-over-year [9] - Analysts remain skeptical about Palantir's reliance on government contracts, but the company has shown strong contract momentum and profitability [9] Investment Outlook - Nvidia is recommended for investors seeking exposure to AI computation and hardware, with a reasonable valuation relative to its growth trajectory [12] - Palantir is seen as a strong option for those focused on AI applications in real-world decision-making, though its premium valuation reflects high expectations [13]