Contrarian Take: Palantir Has a Much Bigger Problem Than Nvidia

Key Points

Palantir Technologies (NASDAQ: PLTR) CEO Alex Karp proclaimed that his company’s fourth-quarter 2025 results prove that Palantir is “an n of 1.” The numbers that excited Karp so much were indeed stellar. Palantir’s revenue soared 70% year over year to $1.4 billion. Its U.S. commercial revenue skyrocketed 137% year over year to $507 million.

During Palantir’s Q4earnings call management seemed to take a few swipes against companies such as Nvidia (NASDAQ: NVDA). For example, Palantir’s Chief Revenue Officer and Chief Legal Officer, Ryan Taylor, said, “The next step is for the market to differentiate between those who are supplying the commoditization of cognition and those who are scaling the leverage made possible by it.”

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No company is, to borrow Taylor’s words, “supplying the commoditization of cognition” more than Nvidia is. However, I have a contrarian take: Palantir has a much bigger problem than Nvidia.

Image source: Getty Images.

A tale of two constraints

To be sure, Palantir and Nvidia share a similar top challenge. Neither company can keep up with demand. That’s a great problem to have for both Palantir and Nvidia.

Nvidia CFO Colette Kress told analysts in the company’s third-quarterearnings callin November 2025, “The clouds are sold out, and our GPU installed base, both new and previous generations,…