Palantir vs. Nvidia: Wall Street Says This Is the Best AI Stock to Buy Now

Core Insights - The artificial intelligence trade has significantly boosted the stock prices of Palantir Technologies and Nvidia since late 2022, with Palantir's shares increasing by 1,650% and Nvidia's by 980% [1][2] - Wall Street analysts believe both stocks are undervalued, with Palantir being highlighted as the best stock to buy currently [2] Palantir Technologies - Palantir develops data integration and analytics platforms, along with AI software that enables developers to integrate large language models into applications [4] - The company utilizes forward deployed engineers to create custom applications for clients, distinguishing itself in the market [4] - Palantir's analytics platforms are built around a decision-making framework known as an ontology, which enhances insights through machine learning feedback loops [5] - The company has shown impressive business fundamentals, with revenue growth accelerating for 10 consecutive quarters and achieving a Rule of 40 score of 127% in Q4 [6] - Palantir is positioned as the enterprise standard in AI platforms, with a market expected to grow at 38% annually through 2033 [6] - The stock currently trades at 205 times earnings, which is considered expensive despite projected earnings growth of 45% annually over the next three years [6] - Among 30 analysts, Palantir has a median target price of $199 per share, indicating a 51% upside from its current price of $132 [8] Nvidia - Nvidia leads the AI accelerator market with an 80% to 90% revenue share, primarily due to the superior performance of its GPUs [10] - The company's full-stack strategy combines high-performance GPUs with other hardware and an extensive ecosystem of code libraries, enhancing AI application development [11][12] - Analysts expect Nvidia to maintain its market leadership in AI infrastructure, with earnings projected to grow at 38% annually over the next three years [13] - The current valuation of Nvidia at 45 times earnings is considered relatively cheap given its growth prospects [13] - Among 74 analysts, Nvidia has a median target price of $250 per share, suggesting a 37% upside from its current price of $183 [8]