Key Points Highlighting the power of the AI boom, Nvidia and Palantir both saw their revenue growth rates accelerate in Q3. Palantir's recent acceleration in its revenue growth rate has been particularly remarkable. One of the two stocks' valuations is just simply too difficult to justify. 10 stocks we like better than Nvidia › Both Nvidia (NASDAQ: NVDA) and Palantir Technologies (NASDAQ: PLTR) reported staggering Q3 results, featuring the type of growth that keeps the AI (artificial intelligenc ...

Core Viewpoint - The article discusses the potential for growth in three AI-related stocks—NVIDIA Corp., Micron Technology, Inc., and Palantir Technologies Inc.—due to the "January Effect" and ongoing demand in the technology sector driven by artificial intelligence [2][4]. Group 1: NVIDIA Corp. - NVIDIA is expected to experience strong growth driven by demand for its AI hardware, particularly its next-generation Blackwell chips and cloud GPUs [5]. - The easing of U.S.-China trade tensions, highlighted by the approval of H200 AI chip shipments to select customers in China, is seen as a positive development for NVIDIA [6]. - NVIDIA projects fiscal fourth-quarter 2026 revenues at approximately $65 billion, with a margin of plus or minus 2% [7]. - The company's expected earnings growth rate for the current year is 55.9%, with a Zacks Consensus Estimate for EPS at $4.66, reflecting a 12% year-over-year increase [8]. Group 2: Micron Technology, Inc. - Micron's high-bandwidth memory (HBM) chips are in continuous demand, supporting growth in 2025 and expected to continue this year [9]. - The company anticipates fiscal second-quarter 2026 revenues between $18.3 billion and $19.1 billion, mirroring revenue growth seen during the dot-com bubble [10]. - Micron's projected earnings growth rate for the current year is 278.3%, with a Zacks Consensus Estimate for EPS at $31.36, indicating a 185.9% year-over-year increase [11]. Group 3: Palantir Technologies Inc. - Palantir is positioned for growth due to the increasing adoption of its Artificial Intelligence Platform (AIP) among U.S. government and commercial clients [12]. - The company expects total revenues for 2025 to be between $4.396 billion and $4.400 billion, indicating growth in both client segments [13]. - Palantir's expected earnings growth rate for the current year is 42.5%, with a Zacks Consensus Estimate for EPS at $0.73, reflecting a 52.1% year-over-year increase [14].

Core Insights - Recent declines in U.S. stocks are concerning as they contradict the historical Santa Claus rally, yet major indexes posted solid gains in 2025 despite an April sell-off due to tariff declarations by President Trump [2] - The "January Effect" is expected to boost stock prices as investors reinvest year-end bonuses and engage in tax-loss harvesting, leading to renewed buying in the markets [3] Company Insights NVIDIA - NVIDIA is positioned for strong growth driven by demand for AI hardware and easing U.S.-China trade tensions, with projected fiscal fourth-quarter 2026 revenues around $65 billion [5][7] - The expected earnings growth rate for NVIDIA is 55.9%, with a Zacks Consensus Estimate for earnings per share (EPS) at $4.66, reflecting a 12% year-over-year increase [8] Micron Technology - Micron's high-bandwidth memory (HBM) chips are in continuous demand, expected to drive growth in fiscal second-quarter 2026 revenues between $18.3 billion and $19.1 billion [11][12] - The projected earnings growth rate for Micron is 278.3%, with a Zacks Consensus Estimate for EPS at $31.36, indicating a 185.9% year-over-year increase [13] Palantir Technologies - Palantir is set for growth due to the increasing adoption of its Artificial Intelligence Platform (AIP) among U.S. government and commercial clients, projecting total revenues for 2025 between $4.396 billion and $4.400 billion [15][16] - The expected earnings growth rate for Palantir is 42.5%, with a Zacks Consensus Estimate for EPS at $0.73, reflecting a 52.1% year-over-year increase [17]

Taiwan Semiconductor Manufacturing is positioned to grow rapidly in 2026.Pinpointing the best-performing artificial intelligence (AI) stock for 2026 is no easy feat. It's impossible to know which companies will launch innovative features, or if 2026 will be a year of buildout. Investors only have a bit of information about what to expect in 2026, and using that tidbit to their advantage is the best that they can do.What piece of information can clue investors into 2026's future? Spending projections from th ...

Core Insights - NVIDIA has experienced a 36.8% increase in shares this year, while BigBear.ai has surged by 48.5%, raising questions about future performance comparisons between the two companies [1] Group 1: NVIDIA - NVIDIA forecasts global data center capital expenditures to reach $3 trillion to $4 trillion annually by 2030, presenting significant sales opportunities for the company [2] - The company reported a 62% year-over-year revenue increase for fiscal Q3 2026, reaching $57 billion, with expectations of approximately $65 billion in fiscal Q4 2026 revenues [3][10] - NVIDIA has returned $37 billion to shareholders through dividends and share buybacks, indicating strong financial health and a competitive position in the AI hardware market [4] Group 2: BigBear.ai - BigBear.ai faced a 20% decline in third-quarter revenues to $33.1 million due to federal funding cuts, following an 18% decrease in second-quarter revenues [5] - The company has acquired Ask Sage for $250 million, which is expected to enhance revenue growth by integrating a secure AI platform for regulated sectors [6][7] - BigBear.ai maintains a strong cash position of $456.6 million as of September 30, 2025, which supports operational scaling and potential revenue growth from increased government spending [8] Group 3: Comparative Outlook - Both NVIDIA and BigBear.ai are positioned for growth, with NVIDIA benefiting from high demand for its chips and strong financials, while BigBear.ai relies on the Ask Sage acquisition and potential government spending increases [9] - BigBear.ai's profitability remains a concern, as its reported net income of $2.5 million in Q3 was due to non-cash adjustments, contrasting with NVIDIA's robust revenue gains [10] - Analysts project a short-term price target of $252.67 for NVIDIA, indicating a 36.6% increase, while BigBear.ai's target is $6.67, reflecting a slight decline [11][13]

Core Insights - The AI boom has significantly benefited NVIDIA Corporation, leading to substantial stock gains, while SoundHound AI, despite strong performance, has faced stock declines [1][7] SoundHound AI - SoundHound's products are increasingly adopted in finance, restaurants, and automotive sectors, with its Houndify platform being utilized by major companies like Mastercard and Chipotle [1][2] - The Amelia platform is enhancing productivity and customer service, with a notable agreement with a regional hospital system [2] - SoundHound reported Q3 revenues of $42 million, a 68% increase year-over-year, and projects full-year revenues between $165 million and $180 million, up from previous estimates [3][9] - However, SoundHound's GAAP net loss for Q3 was $109.3 million, indicating rising operating costs due to aggressive investments [8][7] NVIDIA Corporation - NVIDIA's Q3 fiscal 2026 revenue reached $57 billion, a 62% increase year-over-year, alleviating concerns about an AI bubble [4] - Data center revenues surged 66% to $51.2 billion, while gaming revenues rose 30% to $4.3 billion, with expectations of $65 billion in Q4 revenues [5][9] - NVIDIA has received approval to ship H200 AI processors to approved customers in China, marking a strategic advantage [6] - The company reported a net income of $31.91 billion for Q3, up from $19.31 billion a year ago, showcasing strong profitability [8] - NVIDIA has returned $37 billion to shareholders through buybacks and dividends in the first nine months of fiscal 2026, indicating robust financial health [10] Investment Perspective - While both companies show revenue growth potential, NVIDIA's strong profitability and financial strength make it a more prudent investment choice compared to SoundHound, which is facing losses [7][10]

Core Insights - NVIDIA Corporation (NVDA) experienced a 31.4% increase over the past year, while Palantir Technologies Inc. (PLTR) saw a remarkable 150.8% rise, raising questions about which stock is the better investment in the AI sector [1] - NVIDIA is viewed as a diversified and reasonably valued stock, whereas Palantir is considered high-risk due to its reliance on government contracts and high valuation [1] NVIDIA Insights - NVIDIA is optimistic about future growth, driven by its competitive edge in the AI hardware market and ongoing demand for its CUDA software platform [1] - The company projects fiscal Q4 2026 revenues of approximately $65 billion, with a 2% margin of error [1] - Strong demand for Blackwell chips and cloud GPUs contributed to outstanding fiscal Q3 2026 results, with revenues of $57 billion, a 62% year-over-year increase and a 22% sequential rise [2] - Both data center and gaming revenues increased, with net income reaching $31.91 billion, up from $19.31 billion a year earlier, alleviating concerns about an AI growth bubble [3] - NVIDIA's forward P/E ratio is 39.44, which is lower than the Semiconductor - General industry's average of 44.97, indicating reasonable valuation [10] - The diversified business model across AI hardware, software, and gaming provides additional market resilience [10] Palantir Insights - Palantir's AI Platform (AIP) has driven robust demand, expanding its U.S. commercial client base while maintaining valuable government contracts [4] - U.S. commercial segment revenues reached $397 million in Q3, a 121% year-over-year increase and a 29% sequential rise [4] - Government revenues for the quarter were $486 million, a 52% year-over-year increase and a 14% quarter-over-quarter rise, contributing to total revenues of $1.18 billion, a 63% year-over-year increase and an 18% sequential rise [5] - Palantir anticipates an increase in large AI enterprise contracts, projecting full-year revenues between $4.396 billion and $4.400 billion [6] - However, Palantir's forward P/E ratio of 250.36 significantly exceeds the Internet-Software industry's average of 39.25, raising concerns about valuation [8] - The company's dependence on government contracts exposes it to political risks, making it more suitable for risk-takers [11]

Core Insights - The article emphasizes the investment potential in NVIDIA Corporation (NVDA) and Palantir Technologies Inc. (PLTR) as key players in the upcoming AI boom leading to 2026 [1][8]. NVIDIA Corporation (NVDA) - NVIDIA reported revenues of $57 billion in fiscal Q3 2026, marking a 62% year-over-year increase and a 22% quarter-over-quarter rise [1][4]. - The data center segment saw a significant revenue increase of 66% year-over-year, reaching $51.2 billion, while gaming revenues rose by 30% to $4.3 billion [2]. - NVIDIA's management anticipates revenues for fiscal Q4 2026 to reach $65 billion, with a 2% margin of error [3]. - The company returned $37 billion to shareholders through dividends and share buybacks in the first nine months of fiscal 2026, with a net income of $31.91 billion in fiscal Q3 2026, up from $19.31 billion a year earlier [4]. Palantir Technologies Inc. (PLTR) - Palantir has expanded its U.S. commercial presence while maintaining government contracts, with U.S. commercial revenues reaching $397 million in Q3, up 121% year-over-year and 29% quarter-over-quarter [5]. - Total revenues for Palantir in Q3 reached $1.18 billion, a 63% year-over-year increase and an 18% quarter-over-quarter rise, exceeding Wall Street expectations [6]. - The company expects full-year revenues to be between $4.396 billion and $4.400 billion, with Q4 revenues projected between $1.327 billion and $1.331 billion [7]. Investment Strategy - The combination of NVIDIA's financial strength and Palantir's growth potential presents a balanced investment approach for the AI sector [8]. - NVIDIA's forward price-to-earnings (P/E) ratio is 38.94, which is more reasonable compared to Palantir's high valuation of 230.7, indicating a potential risk in Palantir's stock price during market corrections [9][11]. - Both companies hold favorable Zacks Ranks, with NVIDIA at 1 (Strong Buy) and Palantir at 2 (Buy) [12].

Core Insights - NVIDIA Corporation (NVDA) is significantly outperforming competitors Advanced Micro Devices, Inc. (AMD) and Intel Corporation (INTC), driven by strong demand for its Blackwell chips and cloud services [1][8] Financial Performance - NVIDIA reported fiscal Q3 2026 revenues of $57 billion, a 62% year-over-year increase and a 22% rise from the previous quarter [1] - Data center segment revenues reached $51.2 billion, up 66% year-over-year and 25% quarter-over-quarter, while gaming revenues were $4.3 billion, reflecting a 1% decline from the previous quarter but a 30% increase year-over-year [2] - Net income for the quarter rose to $31.91 billion, compared to $19.31 billion in the same period last year [3] Future Outlook - NVIDIA anticipates Q4 2026 revenues to be around $65 billion, with a margin of plus or minus 2%, indicating strong growth potential [4] - The company emphasizes its leadership in AI hardware and the competitive advantage provided by its CUDA software platform [4] Market Sentiment - CEO Jensen Huang reassured investors about the sustainability of the AI boom, stating that the AI ecosystem is rapidly expanding across various industries and countries [5] - NVIDIA has returned $37 billion to shareholders through buybacks and dividends since the start of fiscal 2026, reflecting financial strength [6] Investment Potential - Following the record Q3 results, NVIDIA's growth outlook and shareholder returns make the stock attractive, with brokers forecasting an average short-term price target of $239.49, a 28.4% increase from the last closing price of $186.52 [7] - The highest target is set at $350, suggesting a potential upside of 87.7% [7] - NVIDIA's price-to-earnings (P/E) ratio stands at 40.33, which is more affordable compared to the Semiconductor - General industry's forward earnings multiple of 45.92 [10]