NVDA - Better Artificial Intelligence Stock: Nvidia vs. Palantir
2024-07-12 04:30:00 ET
When it comes to stocks riding the wave of excitement around artificial intelligence (AI) technologies, perhaps no other stock has done it better than Nvidia (NASDAQ: NVDA) . As the dominant AI chip design company, its semiconductors are in high demand as organizations scramble to buy chips to support their AI needs. Palantir (NYSE: PLTR) is another tech stock riding the AI wave, offering a product that has delivered eye-popping productivity gains with AI's help.
Over the past year, both stocks have done extremely well, with Nvidia reporting 209% gains while Palantir rose nearly 79%. But investing is more about picking stocks based on the promise of future performance. Can both of these stocks keep riding the AI wave? If so, which has the better chance of staying up on the board longer? Let's take a closer look.
Nvidia has undoubtedly experienced a wild ride thanks to AI. Investors primarily knew it as a graphics and gaming company until the early part of the decade. As recently as fiscal 2022 (ended in January 2022), the company's largest source of revenue was gaming. But even at that time, the company's data center segment had become increasingly important as data centers became a fast-growing market for its GPUs. Additionally, it had begun developing chips specifically for AI purposes.
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Better Artificial Intelligence Stock: Nvidia vs. Palantir