By Keithen Drury
Publication Date: 2026-02-09 17:00:00
Key Points
Palantir Technologies (NASDAQ: PLTR) and Nvidia (NASDAQ: NVDA) are two of the biggest names in artificial intelligence (AI). One plays in the software realm while the other is on the hardware side. Both of these companies are making huge profits right now from the AI boom, but which one makes for the better investment?
I think each has a solid case for why it could be the ultimate winner, but only one can emerge as the best.
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Software revenue is longer lasting
Nvidia makes graphics processing units (GPUs), which are used in data centers globally to train and run AI models. This makes it the ultimate pick-and-shovel play for the AI gold rush. The company is making a ton of money right now from the GPUs it sells, and as data center construction expands, it will grow alongside that.
However, at some point in time, there will be enough computing capacity for AI. When this will occur is anyone’s guess, and it may not be until after 2030. When we hit that point, Nvidia’s growth will significantly slow, and a large chunk of its business will come from replacing burned-out or outdated GPUs, which can still be a great business, but just not one that’s growing as rapidly as it is now.
Palantir makes AI-powered data analytics software that helps its users make…
