Is Palantir or Nvidia the Best AI Stock for 2026?

Core Insights - Both Palantir and Nvidia are experiencing significant revenue growth, exceeding 60% year-over-year, with Palantir outperforming Nvidia substantially since 2023 [1][11] - As of 2026, both companies face challenges, but Palantir's business model appears to be more resilient compared to Nvidia's [2][4] Company Performance - Palantir's revenue grew 63% year-over-year to $1.12 billion in Q3, with its AIP platform gaining traction among commercial and government clients [5][11] - Nvidia's revenue also increased by 62% year-over-year in Q3 fiscal year 2026, indicating strong performance despite rising competition [11] Competitive Landscape - Palantir is nearly unchallenged in its industry, capturing significant market share and big-name clients [5][4] - Nvidia, once dominating the data center computing unit market with an estimated 90% share, is now facing competition from AMD and Alphabet, which are developing alternative AI computing solutions [7][8] Valuation Analysis - Palantir's stock is trading at 243 times forward earnings, significantly higher than Nvidia's 38 times forward earnings, suggesting that Palantir's growth is already priced into its stock [13][15] - Despite Nvidia's higher competition, its valuation appears more reasonable given its growth rate, making it a potentially better investment option moving forward [16]