Core Viewpoint - Nvidia is expected to perform well in 2025, but Palantir Technologies may see a larger percentage increase in stock value, potentially over 150% [1] Group 1: Company Performance - Palantir reported a total revenue of $1.18 billion in Q3 2025, reflecting a 63% year-over-year increase and an 18% quarter-over-quarter increase [4] - Nvidia's Q3 revenue reached $57 billion, marking a 62% year-over-year increase and a 22% quarter-over-quarter increase [7] Group 2: Revenue Sources - Palantir generates the majority of its revenue from U.S. contracts, particularly with the federal government, but its U.S. commercial revenue is growing faster than government revenue [5] Group 3: Revenue Guidance - Palantir forecasts a quarter-over-quarter revenue growth of 12.5% for Q4, while Nvidia projects a growth of 14% [8] Group 4: Valuation Metrics - Nvidia's forward price-to-earnings ratio is approximately 24.8, with a PEG ratio of 0.72, indicating an attractive valuation [12] - Palantir's forward price-to-earnings ratio is 192.3, with a PEG ratio over 3.0, suggesting it is significantly more expensive than Nvidia [13] Group 5: Investment Proposition - Despite Palantir's impressive revenue growth, Nvidia offers a better risk-reward proposition due to its lower valuation [15]

Core Viewpoint - Palantir Technologies has shown impressive growth with a 63% year-over-year revenue increase, but its high valuation raises concerns about sustainability [2][4][11] Financial Performance - Palantir's Q3 revenue reached $1.18 billion, surpassing Wall Street's consensus estimate of $1.09 billion and accelerating from a 48% growth in Q2 [2][4] - The company reported earnings per share (EPS) of $0.18 (GAAP) and $0.21 (adjusted), exceeding analysts' expectations of $0.17 [4] - The gross margin stands at 81.33%, indicating strong profitability [7] Valuation Concerns - Palantir's stock trades at a forward price-to-earnings ratio of 217, the highest among S&P 500 companies, and a trailing price-to-sales (P/S) ratio of 137, significantly above the industry average of 8.8 [7][8][10] - Despite strong revenue growth, the current valuation may not be justified, especially with guidance indicating a potential slowdown in growth [11][12] Market Reaction - Following the Q3 results, Palantir's stock fell approximately 2% in after-hours trading, reflecting investor caution despite the positive earnings report [6][12] - CEO Alex Karp acknowledged the company's high valuation, referring to it as being in a "nosebleed zone," which may deter some investors [7][8]