As artificial intelligence continues to reshape the technology landscape, investors are weighing Palantir Technologies (PLTR) and Nvidia (NVDA) as leading contenders. Both companies demonstrate strong performance, but key metrics reveal divergent growth trajectories and valuation profiles.
- Nvidia generated $39.3 billion in revenue in its latest quarter, up 263% year-over-year.
- Palantir’s revenue reached $1.3 billion, with a 41% increase in net revenue retention.
- Nvidia's P/E ratio is 68, while Palantir’s is 122, reflecting differing investor expectations.
- Palantir’s free cash flow conversion rate improved to 57%.
- Nvidia is up 220% year-to-date; Palantir is up 185%.
- Nvidia leads in AI chip supply; Palantir focuses on enterprise AI software deployment.
Palantir Technologies and Nvidia have emerged as pivotal players in the AI ecosystem, each offering distinct value propositions. Nvidia, a semiconductor leader, continues to dominate AI chip supply with its H200 and Blackwell architectures, driving strong revenue momentum. In its most recent fiscal quarter, Nvidia reported $39.3 billion in revenue, a 263% year-over-year increase, fueled by demand for AI accelerators across data centers and cloud providers. Palantir, a software and data analytics firm, has seen its revenue grow at a compound annual rate of 35% over the past three years, reaching $1.3 billion in the latest quarter. Its flagship platforms—Foundry and Gotham—have been deployed across government agencies and Fortune 500 enterprises, contributing to a 41% increase in net revenue retention. Despite a lower market cap compared to Nvidia, Palantir’s enterprise software model offers recurring revenue and strong customer stickiness. Valuation metrics reveal a contrast in investor sentiment. Nvidia trades at a price-to-earnings ratio of 68, reflecting high growth expectations and premium positioning in the AI supply chain. In contrast, Palantir’s P/E ratio is 122, but this is supported by its rising profitability and non-GAAP net income growth of 56% year-over-year. The company’s free cash flow conversion rate has improved to 57%, indicating enhanced operational efficiency. Market impact is significant: Nvidia remains a core holding in AI-focused ETFs and major tech portfolios, while Palantir’s growing adoption in defense, healthcare, and logistics sectors has attracted institutional interest. The divergence in performance—Nvidia up 220% year-to-date, Palantir up 185%—suggests strong momentum in both, but with different risk-return profiles. Investors seeking exposure to foundational AI infrastructure may favor Nvidia, while those prioritizing scalable enterprise software with high retention may find Palantir compelling.