Nvidia vs. Palantir: Which Is the Better AI Stock for 2026?

Group 1 - Nvidia reported a fiscal Q3 revenue increase of 62% year over year, reaching $57.0 billion, with net income climbing 65% to $31.9 billion, driven primarily by its data center segment which saw a 66% revenue increase to $51.2 billion [4][5]. - Nvidia's CEO highlighted that the AI ecosystem is rapidly expanding, with more foundation model makers and AI startups emerging across various industries and countries, indicating a strong growth trajectory for AI technologies [6]. - Nvidia shares are currently trading at a price-to-earnings ratio of 46, but the forward price-to-earnings ratio of 25 suggests analysts anticipate significant earnings growth over the next year, making the current valuation appear justified [7]. Group 2 - Palantir also experienced accelerated revenue growth in Q3, reflecting the impact of the AI boom, although its valuation is considered difficult to justify compared to Nvidia [8][9]. - Palantir's Artificial Intelligence Platform (AIP) is witnessing rapid adoption as it aims to enhance data usability for organizations in the AI era [10].