Core Insights - Investing in growth stocks, particularly those benefiting from artificial intelligence (AI), is highlighted as a promising strategy for building wealth in the new year [1] Group 1: Nvidia - Nvidia has achieved an extraordinary return of 458,000% since its IPO in 1999, with a current stock price trading at 25 times this year's earnings estimate, indicating solid value [2] - The company's data center revenue surged by 66% year over year last quarter, driven by high demand for its graphics processing units (GPUs) and networking components [3] - Despite increasing competition in the AI chip market, Nvidia's older chip generations continue to provide value to customers, allowing them to lower total ownership costs [4] - Nvidia's CUDA programming software enhances chip efficiency, extending their useful life and reducing the likelihood of customers switching to competitors [5] - The company has visibility into $500 billion of cumulative revenue from its current and upcoming chips, with analysts projecting a 50% revenue growth this year to $319 billion [7] - Nvidia is generating $99 billion in annual net profit and is expected to grow revenue at an annualized rate of 31% through the end of the decade, reaching $227 billion [8] Group 2: Palantir Technologies - Palantir Technologies is experiencing accelerating revenue growth for its AI platforms, with a quarterly growth rate of 63% year over year as of the third quarter of 2025 [10] - The company has a gross margin of 80.81% and is well-positioned to meet the growing demand for AI applications on edge devices, such as drones and robots [12][13] - Analysts project Palantir's annual revenue to grow at a rate of 39%, reaching $16.5 billion by 2029, up from $3.9 billion on a trailing 12-month basis [14]

Core Insights - Palantir has experienced its worst week since February, with stock losses despite strong earnings, attributed to CEO Alex Karp's criticism of short sellers [1][2] - The company reported a revenue of $1.18 billion for Q3, a 63% year-over-year increase, and earnings per share of $0.21, surpassing Wall Street estimates by 25% [6][7] - Palantir's stock has seen a significant year-to-date rally of 136%, driven by advancements in artificial intelligence [2] Financial Performance - Q3 revenue of $1.18 billion marks the fastest growth since early 2022, with quarterly revenue nearly tripling from $446 million in Q1 2022 [6][7] - Earnings per share increased from $0.02 to $0.21 over the same period, with only one loss-making quarter in the last fifteen [7] - Free cash flow reached $311 million in the latest quarter, totaling $817 million over the trailing 12 months, indicating a 21% free cash flow margin [8] Market Dynamics - The stock is currently above its 50-day simple moving average of $177.73, suggesting short-term price stability, while the 200-day SMA is at $135.32, indicating a strong long-term uptrend [4] - The market sentiment is divided, with bulls highlighting Palantir's execution and profitability, while bears express concerns over valuation and reliance on government contracts [10]