Nvidia or Palantir: Better AI Investment?

Published Date : 26/09/2025 

Both Nvidia and Palantir are leading the AI revolution, but one stands out as a better investment. Discover which company has the edge and why. 

Both tech companies are crushing it in AI, but one is a better bet for investors, thanks to a key factor. Two heavyweights of the artificial intelligence (AI) age are Palantir Technologies (PLTR) and Nvidia (NVDA). Both businesses benefited tremendously from the tailwind of AI industry growth.

As AI adoption accelerated around the world, Palantir and Nvidia experienced rising share prices. In 2025, Nvidia's shares are up more than 30% through Sept. 23. Palantir's stock soared over 135% in that time. But if you had to choose between this pair of AI giants, does one stand out as the better investment in artificial intelligence? Here's a closer look at each company to determine the answer.

Palantir has been on an incredible run of rising revenue. The company's sales in the second quarter jumped 48% year over year to $1 billion, the first time quarterly revenue reached this level. The result improved on Q1's 39% year-over-year revenue growth to $884 million, and enabled Palantir to raise 2025 full-year guidance to $4.1 billion, a significant increase from 2024's $2.9 billion.

This success is thanks to its Artificial Intelligence Platform (AIP). Like all AI, AIP relies on massive amounts of data to make decisions and execute tasks. This fact puts Palantir in a position of strength in the AI era. The company specializes in data analytics, and so possesses plenty of fuel for its AI fire. In fact, Palantir's roots in analyzing data for government intelligence agencies give it a unique and unparalleled level of data expertise.

Now, Palantir is expanding into additional areas as it seeks to maintain its remarkable revenue growth. Its FedStart product leverages the company's long history working with the U.S. government to help other businesses with the complexities of federal compliance. Additionally, its Warp Speed solution employs AI to modernize manufacturing systems. The U.S. Navy adopted it to aid in shipbuilding.

Like Palantir, Nvidia experienced outsized sales growth thanks to AI. Its advanced semiconductor chips used to power AI systems propelled the company's revenue to $46.7 billion, a 56% year-over-year increase, in its fiscal Q2, ended July 27. Despite government restrictions that blocked Nvidia from selling its chips to China, one of the world's largest AI markets, the company still expects fiscal Q3 sales of $54 billion. That sum blows away the Q3 record of $35.1 billion earned in the prior fiscal year, which included sales to China.

Nvidia's current AI chip, Blackwell, debuted last year as the platform designed specifically to power tech infrastructure for AI. Even so, Nvidia already has a successor, Vera Rubin, poised to launch in 2026. That's just the start of the AI semiconductor giant's moves to expand its business. On Sept. 22, Nvidia announced a partnership with OpenAI, the creator of ChatGPT, which launched the current generative AI boom. The deal involves OpenAI adopting Vera Rubin to power a massive rollout of AI data centers, an initiative incorporating millions of Nvidia chips.

The implementation is so ambitious, Nvidia CEO Jensen Huang called it 

Frequently Asked Questions (FAQS): 

Q: What is the main difference between Nvidia and Palantir in the AI market?

A: Nvidia specializes in semiconductor chips that power AI systems, while Palantir focuses on data analytics and AI platforms for government and enterprise use.

Q: How has Palantir's revenue grown in recent quarters?

A: Palantir's sales in the second quarter of 2025 jumped 48% year over year to $1 billion, marking the first time quarterly revenue reached this level.

Q: What is Nvidia's current AI chip, and what is its successor?

A: Nvidia's current AI chip is Blackwell, and its successor, Vera Rubin, is set to launch in 2026.

Q: Why is Nvidia's valuation considered better than Palantir's?

A: Nvidia's forward P/E ratio is significantly lower than Palantir's, making its shares less expensive and more attractive to investors.

Q: What major partnerships has Nvidia announced recently?

A: Nvidia announced a partnership with OpenAI to power AI data centers and a $5 billion investment in Intel to integrate Nvidia products into Intel's AI data center and personal computing solutions. 

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