By Anders Bylund
Publication Date: 2025-12-07 17:00:00
Key Points
-
Palantir trades at a stratospheric 109 times revenue while Nvidia’s 24 times sales looks almost (almost!) reasonable by comparison.
-
Palantir’s military-style data analytics platform limits its addressable market compared to Nvidia’s universal AI infrastructure play.
-
Both stocks are priced for a perfect AI future that may not materialize smoothly, and investors could find better opportunities elsewhere in the AI ecosystem.
- 10 stocks we like better than Nvidia ›
The stock market hasn’t been the same since OpenAI unleashed ChatGPT to the public three years ago. As of Dec. 4, the S&P 500 (SNPINDEX: ^GSPC) market index has posted a 75% total return since then. The tech-heavy Nasdaq-100 index gained a dividend-adjusted 118% over the same period.
But the kings of artificial intelligence (AI) are soaring far above these not-so-pedestrian returns. AI chip champion Nvidia (NASDAQ: NVDA) is up more than tenfold and AI platform master Palantir Technologies (NASDAQ: PLTR) more than doubled Nvidia’s stellar gains:
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue »
PLTR Total Return Level data by YCharts
But past performance is never a guarantee of future results. What matters to today’s investors is a fundamentally different question — which AI stock is the better investment for new money today?
When AI valuations go orbital
Let’s address the elephant in…
