Best Artificial Intelligence (AI) Stock to Buy Now: Nvidia vs. Palantir | The Motley Fool

Best Artificial Intelligence (AI) Stock to Buy Now: Nvidia vs. Palantir | The Motley Fool

By Keithen Drury
Publication Date: 2026-03-15 21:35:00

Nvidia (NVDA 1.56%) and Palantir (PLTR 1.65%) have been top artificial intelligence (AI) investment options over the past few years. These two have partnered together to optimize their offerings and represent two different investment approaches: hardware (Nvidia) and software (Palantir).

There are merits to investing in both, but which one is the better buy now?

Image source: Getty Images.

Software is a more sustainable business model

Palantir sells AI-powered data analytics software. This software has been deployed in several applications, including national defense, intelligence, as well as commercial applications. Essentially, a client that has massive data inflows can deploy Palantir’s software and receive real-time actionable insights on what the next best step is. It also has a platform to automate some of this decision-making, boosting a client’s overall effectiveness.

Palantir Technologies Stock Quote

Today’s Change

(-1.65%) $-2.54

Current Price

$150.96

Nvidia makes graphics processing units (GPUs). GPUs aren’t just intended for processing gaming graphics (although that was their original use case, thus the name). GPUs can process multiple calculations in parallel, making them the perfect choice for any computing need that requires a lot of processing power. AI perfectly suits this description, and Nvidia’s products have been widely deployed in this sector.

But which business is…