Nvidia Vs Palantir

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Nvidia Vs Palantir

Nvidia Vs. Palantir: Which Stock To Buy?

When we talk about growth stocks, the two options that come to mind are Palantir and Nvidia. Especially with all the interest in AI, it becomes very tough to avoid stocks like Palantir and Nvidia.

Both of these companies saw a massive increase in their stock price... But if you really had to choose between Palantir and Nvidia, which would be a better option?

Nvidia

Nvidia remains a top player in the AI world and for all the right reasons. The data centers which are used in the AI infrastructure run on the GPUs made by Nvidia.

That's why the revenue of Nvidia from the data centers jumped by 56% from the last year. So, the company earned almost $41.1 billion from it, which accounted for 88% of the total revenue.

Besides that, Nvidia also sells GPUs for gaming, networking, and the automotive industry. But the revenue from the data centers has really eclipsed the revenue from other sectors.

Palantir

The Palantir is a big name in the software sector, which uses AI to turn raw data into real & actionable insights. Although it's not as integral as Nvidia for the AI ecosystem, the use cases for Palantir are growing rapidly.

Palantir started by working solely with government entities like the FBI and the Department of Defence. Since then, Palantir has also moved into the commercial sector.

So now, the company earns 42% of its revenue from the government sector, and the rest comes from the commercial segment. This diversification also helped the company earn its first-ever billion dollars in revenue during a quarter.

Nvidia Vs. Palantir

If we look at the P/E ratio, Nvidia is sitting at 41, but the P/E ratio of Palantir is way higher than that! In fact, some are even calling Palantir an overvalued firm.

So, based on all of this, it makes sense to go with Nvidia as it's the bigger company and also has an attractive P/E ratio as compared to Palantir.

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