By Umair Aslam
Publication Date: 2026-09-25 21:59:00
Nvidia and Palantir are both sold as ways to own the artificial-intelligence buildout, but investors are buying very different machines. Nvidia sells the computing platform that makes modern AI possible. Palantir sells software that helps governments and companies turn models and data into operating decisions. One collects infrastructure spending across the AI economy; the other must prove that its software can keep capturing a larger share of customer budgets.
At the September 25 close, the price of that distinction was extreme. Nvidia traded at $225.07 and 35.2 times forward earnings, while Palantir closed at $189.67 and 120.4 times forward earnings. Palantir’s multiple was 3.4 times Nvidia’s even though Nvidia’s latest reported revenue growth was higher. That valuation gap makes Nvidia the stronger risk-adjusted stock at current prices. Palantir remains the purer bet on AI software adoption, but its shareholders have far less room for an ordinary quarter.
Article Brief
The Nvidia vs Palantir decision
4 Points24s Read
- Risk-adjusted winnerNvidia combines faster latest-quarter revenue growth with a forward P/E that is less than one-third of Palantir’s.
- Software winnerPalantir offers higher gross margins, triple-digit U.S. commercial growth and direct exposure to operational AI adoption.
- Expectation gapConsensus targets imply 45.6% upside for Nvidia and 3.1% for Palantir from the September 25 close.
- Next testsPalantir reports on November 2; Nvidia’s next expected report…
