The artificial intelligence boom has created some surprising winners, and Palantir Technologies is now outpacing even the mighty Nvidia in stock performance.
While Nvidia recently crossed the $5 trillion market value milestone, Palantir’s stock has climbed an eye-popping 2,700% since January 2023, making it one of the most explosive AI investments on the market.
Both companies serve different but essential roles in the AI revolution. Nvidia designs the powerful computer chips that make AI possible, like building the engines that power race cars.
Palantir creates AI software that helps companies and governments solve complex problems immediately. Think of Nvidia as the hardware wizard and Palantir as the problem-solving genius.
In 2025 alone, Palantir’s stock has jumped about 130% while Nvidia has gained a respectable 30%.
That means if you invested $1,000 in each company at the start of the year, your Palantir investment would be worth much more.
However, Nvidia’s total size still dwarfs Palantir, which makes Nvidia’s gains more impressive in dollar terms.
Palantir’s financial numbers tell an encouraging story. The company achieved a 46% free cash flow margin in the third quarter of 2025, showing it can turn sales into actual profit efficiently.
Revenue is expected to grow 54% in 2025, with analysts predicting 30-40% annual growth through 2030. Rising investment in AI infrastructure is estimated to reach $7 trillion by 2030, supporting long-term growth for companies like Palantir.
Companies implementing Palantir’s solutions can expect operational efficiency gains similar to those seen with B2B integration, including automated workflows and reduced manual errors.
But here’s where things get interesting and a bit concerning. Palantir trades at 284 times its earnings, which is like paying $284 for every $1 the company makes.
That’s extremely costly by traditional standards.
Even famous investor Michael Burry has bet against both Palantir and Nvidia, suggesting their prices might be too high. Meanwhile, neocloud companies like Nebius Group have emerged as specialized alternatives to traditional cloud giants, offering targeted AI compute services.
Despite the lofty valuations, both companies remain strong choices for investors wanting exposure to AI’s long-term growth.
Palantir’s unique ability to deploy AI for mission-critical applications gives it a special advantage.
However, with such high expectations already built into their stock prices, investors should be prepared for potential bumps along the road.
