Palantir

With roughly 10 weeks to go before 2025 comes to a close, it looks as if it’ll be another banner year on Wall Street — and the evolution of artificial intelligence (AI) is a big reason why.

Empowering software and systems with AI capabilities affords them the opportunity to make split-second decisions and become more efficient at their assigned tasks without human intervention. It’s a game-changing technology that the analysts at PwC believe can add $15.7 trillion to the global economy by the turn of the decade.

Although dozens of public companies have benefited from the AI revolution, none have taken their spot on Wall Street’s mantle quite like Nvidia (NVDA 0.86%), the largest publicly traded company, and Palantir Technologies (PLTR 0.11%). Since 2022 came to a close, Nvidia stock has rocketed higher by more than 1,100% and added over $4 trillion in market value. Meanwhile, Palantir shares are approaching a nearly 2,700% cumulative gain, as of the closing bell on Oct. 16, 2025.

Image source: Getty Images.

While there’s a laundry list of reasons that can justify the breathtaking rallies we’ve witnessed in both companies, this dynamic AI duo has also issued a very clear warning to Wall Street that can’t be swept under the rug.

Nvidia’s and Palantir’s success derives from their sustainable moats

There are few business characteristics investors appreciate more than sustainable moats. Companies that possess superior technology, production methods, or platforms don’t have to worry about competitors siphoning away their customers.

Nvidia is best known for its world-leading graphics processing units (GPUs), which act as the brains of enterprise AI-accelerated data centers. Though estimates vary, Nvidia is believed to control 90% or more of the AI-GPUs currently deployed in corporate data centers.

No external GPU developers have come close to challenging Nvidia’s Hopper (H100), Blackwell, or Blackwell Ultra chips, in terms of compute abilities. With CEO Jensen Huang targeting the release of a new advanced AI chip in the latter half of 2026 and 2027, it seems highly unlikely that Nvidia will cede much of its AI-GPU data center share anytime soon.

To add fuel to the fire, Nvidia’s CUDA software platform has served as an unsung hero. This is the toolkit used by developers to build and train large language models, as well as maximize the compute abilities of their Nvidia hardware. The value of this software is exemplified by Nvidia’s ability to keep its clients within its ecosystem of products and services.

Meanwhile, the beauty of Palantir’s operating model is that no other company exists that can match its two core AI- and machine learning-inspired platforms at scale.

Gotham is Palantir’s true breadwinner. This software-as-a-service platform is used by the U.S. government and its primary allies to plan and oversee military missions, as well as gather and analyze data. The other core platform is Foundry, which is a subscription-based service for businesses looking to make sense of their data and automate some aspects of their operations to improve efficiency.

Palantir’s government contracts have supported a consistent annual sales growth rate of 25% or above, and played a key role in pushing the company to recurring profitability well ahead of Wall Street’s consensus forecast.

Yet in spite of these well-defined competitive edges, this AI-inspired dynamic duo has offered a stark warning to Wall Street and investors.

Image source: Getty Images.

Nvidia’s and Palantir’s insiders are sending a clear message to Wall Street

Though AI has been the hottest thing since sliced bread over the last three years, it’s not without headwinds.

For example, every next-big-thing technology and hyped innovation since (and including) the advent of the internet more than 30 years ago has endured an early innings bubble-bursting event. This is to say that all new technologies have needed time to mature, and evidence of that maturation isn’t wholly evident from the companies investing in AI solutions.

But perhaps the most damning message of all comes from the insiders at Nvidia and Palantir Technologies.

An “insider” refers to a high-ranking employee, member of the board, or beneficial owner holding at least 10% of a company’s outstanding shares. These are folks who may possess non-public information and know their company better than anyone on Wall Street or Main Street.

Insiders of publicly traded companies are required to be transparent with their trading activity. No later than two business days following a transaction — buying or selling shares of their company, or exercising options — insiders are required to file Form 4 with the Securities and Exchange Commission. These filings tell quite the tale with these two high-flying AI stocks.

Over the trailing five-year period, net-selling activity by insiders is as follows:

• Nvidia: $5.342 billion in net selling of shares
• Palantir: $7.178 billion in net selling of shares

In other words, insiders at the two hottest stocks in the AI arena have, collectively, sold $12.5 billion more of their own company’s stock than has been purchased since Oct. 16, 2020.

The stipulation to this publicly reported data is that most executive and board members at public companies receive their compensation in the form of common stock and/or options. To cover the federal and/or state tax liability tied to their compensation, company insiders often sell stock. In short, there are viable reasons for insiders to head for the exit that aren’t necessarily bad news.

What may be even more telling with Nvidia and Palantir Technologies is the complete lack of insider buying we’ve witnessed. The last time an Nvidia executive or board member purchased stock, based on Form 4 filings, was in early December 2020. Meanwhile, there’s been just one purchase by an executive or board member for Palantir since the company went public in late September 2020.

Neither Nvidia nor Palantir Technologies are inexpensive stocks, based on their price-to-sales (P/S) ratios. Over the trailing-12-month period, Nvidia and Palantir are valued at P/S ratios of 27 and 131, respectively. History tells us both figures aren’t sustainable over an extended period.

If no insiders from either company are willing to buy shares of their own stock, why should everyday investors?

The artificial intelligence (AI) megatrend has dominated the stock market over the past three years, and with massive AI spending projections stretching out through 2030 and beyond, that doesn’t look likely to change anytime soon. Two of the most successful stock picks in that part of the tech sector in recent years have been Palantir (PLTR 0.11%) and Nvidia (NVDA 0.86%). They aren’t competitors, as they operate on different sides of the AI value chain. Nvidia is a largely hardware provider, while Palantir makes software.

Both have made their long-term investors a ton of money, but the question is, which one provides the better investment opportunity from here? Let’s break that question down and consider it by category.  

Business model

Nvidia makes the world’s leading graphics processing units (GPUs), and its wares are by far the most popular parallel-processor chips for powering and training AI models. Nvidia has enjoyed solid market dominance over the past few years, but rising competition from AMD (NASDAQ: AMD) and Broadcom (NASDAQ: AVGO) could challenge that. Additionally, the AI infrastructure buildout won’t last forever. There will eventually be a time when companies aren’t racing to add high volumes of computing capacity, but instead mostly replacing processors as they reach the end of their useful lifespans.

Palantir sells its customers artificial intelligence-powered data analytics platforms, and it has a large client base in both the commercial and government spaces. Palantir’s software enables those with decision-making authority to act quickly and with the most up-to-date information possible. Furthermore, it also offers automation tools that can task AI agents with jobs that humans have traditionally done, freeing up employees to do work that requires original thinking.

Even after the initial stages of the AI revolution are over, the use cases for AI will continue to grow. Palantir’s software is also a subscription service, so for customers to continue using it, they must pay their Palantir bills every year, while data center operators may be able to put off replacing their Nvidia GPUs for a while. This makes Palantir’s business model more sustainable, giving it the edge here.

Winner: Palantir

Growth rates

Both companies are growing at similar rates, although Nvidia’s sales have decelerated on a percentage basis, while Palantir’s continue to gradually accelerate.

NVDA Revenue (Quarterly YoY Growth) data by YCharts.

Whether Palantir will take the lead on growth or not, only time will tell, but with massive demand for AI services still out there, each will likely maintain a relatively rapid growth rate for the foreseeable future, leading me to view them as fairly evenly matched by this criterion.

Winner: Tie

Valuation

From a valuation standpoint, the comparison isn’t particularly close. Palantir’s stock has delivered incredible returns alongside Nvidia, but a large chunk of Palantir’s share price gains has come from its valuations rising to outsized levels, and that condition is not sustainable.

NVDA PE Ratio (Forward) data by YCharts.

Nvidia trades at a comparatively cheap 42 times forward expected earnings, while Palantir’s ratio tops 275. For comparison, if Nvidia had the same forward P/E as Palantir, it would be worth over $30 trillion, versus the $4.6 trillion it’s actually worth.

This shows that Palantir is overvalued. It will have to deliver years of sales and earnings growth to return the stock to a more reasonable level, even if it simply moves sideways from here. If we set Nvidia’s current valuation of 42 times forward earnings as that “more reasonable” level, and Palantir’s revenue rises at a 50% compound annual growth rate while it maintains a 35% profit margin, it would take over five years’ worth of growth to bring its P/E down to the target. And again, that assumes the stock doesn’t rise during those five years.

That means that Nvidia has basically a five-year head start on Palantir’s long-term stock performance. Given that AI spending is projected to grow rapidly over the next five years, Nvidia shares should easily outperform Palantir moving forward, as Palantir will spend most of the next five years growing into its already expensive valuation. Which is why, despite the two companies’ similar growth rates and Palantir’s more attractive business model, it’s not the AI stock I’d suggest buying now.

Overall winner: Nvidia

Palantir Technologies (PLTR 0.79%) is one of the most popular artificial intelligence (AI) stocks on the market, especially among retail investors. Shares have advanced 140% year to date, after skyrocketing 340% last year. And the company recently got a big vote of confidence from a Wall Street analyst.

Mariana Perez Mora, who covers aerospace and defense at Bank of America, recently raised her target price to $215 per share, up from $180 per share. Mora’s forecast is now the most bullish on Wall Street, and it implies 17% upside from the current share price of $183.

Here’s what investors should know about Palantir.

Image source: Getty Images.

Palantir is a leader in artificial intelligence platforms

In her recent note, Bank of America analyst Mariana Perez Mora highlighted two qualities that differentiate Palantir. First, the company uses what it calls forward-deployed engineers (FDEs), developers that work directly with specific clients to build custom solutions. FDEs are a particularly compelling value proposition as more companies look to integrate artificial intelligence into workflows.

Second, Palantir designed its software around an ontology, a framework that serves as the digital twin of an organization. Think of an ontology as a cause-and-effect diagram that uses digital information to define the relationship between physical objects. It lets clients easily troubleshot, automate, and optimize business processes with artificial intelligence.

In short, whereas most analytics tools are built around data, Palantir designed its software around a decision-making framework. Chief Technology Officer Shyam Sankar told analysts on the second-quarter earnings call, “Our foundational investments in ontology and infrastructure have positioned us uniquely to deliver on AI demand.”

Indeed, Forrester Research ranked Palantir as the technology leader in its most recent report on artificial intelligence and machine learning (ML) platforms, awarding its AIP platform higher scores than similar products from Amazon, Microsoft, and Alphabet. And IDC ranked the company as the market leader in its latest report on decision intelligence software.

Bank of America says Palantir’s revenue could reach $18 billion annually by 2030

Palantir currently earns the majority of its revenue from government customers, and that business segment has regained its momentum due to demand for AI among defense and intelligence agencies. Government revenue growth has accelerated in six consecutive quarters and adoption is expanding beyond the U.S.

NATO earlier this year acquired Palantir’s Maven Smart System, an AI-powered warfighting platform already used across the U.S. military to improve battlefield targeting and supply chains. More recently, Palantir struck a five-year, 750 million-pound deal with the U.K. Ministry of Defense to help the U.K. military develop AI capabilities. That is the largest government contract outside the U.S. to date.

Mora at Bank of America thinks that momentum will continue as more countries consider the Maven Smart System. She estimates government revenue will reach $8 billion annually by 2030. However, Mora expects commercial revenue to eclipse that figure, reaching $10 billion by the end of the decade, as enterprises choose to buy Palantir’s AI operating system rather than build their own.

To summarize, Mora believes demand for artificial intelligence will be a major catalyst for Palantir, pushing total revenue to $18 billion annually by 2030. To put that in context, the company reported $3.4 billion in revenue over the last 12 months, so her forecast implies revenue growth of 35% annually over the next five-plus years.

Palantir is the most expensive stock in the S&P 500 several times over

Palantir is well positioned for future growth. Grand View Research estimates the data analytics market will expand at 29% annually through 2030, driven by demand for artificial intelligence and machine learning tools. As the market leader in decision intelligence software with deep expertise in AI/ML, Palantir is likely to report faster revenue growth than the overall market.

However, that still doesn’t justify the current valuation of 134 times sales. For context, the next closest stock in the S&P 500 is AppLovin with a price-to-sales multiple of 39. That means Palantir could lose 70% of its market value and still be the most expensive stock in the index.

Consider this scenario: If Bank of America is correct in forecasting $18 billion in revenue in 2030, Palantir would still trade at 24 times sales by that point if its stock price does not change at all. Only eight stocks in the S&P 500 currently have valuations above 24 times sales, so Palantir would still be one of the most expensive stocks in the index (by current standards) without any share price appreciation in the next five-plus years.

Here’s the bottom line: Palantir is an excellent business, but the stock is wildly overvalued. That does not mean shares will decline anytime soon. Palantir could very well reach Mora’s target price of $215 per share. But the risk-reward profile is undoubtedly skewed to the downside, so investors should make the prudent choice and look elsewhere. There are plenty of other AI stocks with more favorable risk-reward profiles.

Sept. 23 (UPI) — U.S. defense, space and security will benefit from Boeing’s use of Palantir’s artificial intelligence-based Foundry platform to streamline its major production lines, officials said Tuesday.

Boeing and Palantir announced the collaborative effort on Tuesday and said it will improve the production of military aircraft, helicopters, satellites, spacecraft, missiles and weapons systems.

“Palantir is on the cutting edge when it comes to leveraging artificial intelligence to accelerate getting critical products, services and capabilities in the hands of military operators,” said Steve Parker, Boeing’s Defense, Space & Security chief executive officer, in a news release on Tuesday.

“This collaboration is a natural fit that brings together two great companies with a common mission: supporting uniformed personnel in protecting freedom around the world.”

Denver-based Palantir also will provide Boeing with AI expertise and capabilities on several classified efforts that support the needs of its military clients during their most sensitive missions.

The collaborative effort will enable Boeing and Palantir to deliver dominant military capabilities that enable the United States to more effectively deter conflicts and defend the nation, Palantir’s head of defense, Mike Gallagher said.

“This partnership will turbocharge production and innovation, allowing Boeing and Palantir to bring cutting-edge technology to current and next-generation defense programs,” Gallagher added.

“America’s enemies aren’t slowing down,” he said. “Neither can we.”

Palantir in August received an up-to $10 billion, 10-year contract to improve the U.S. Army’s military readiness with AI.

Federal home mortgage firm Fannie Mae in May also contracted with Palantir to create an AI-powered unit to prevent and stop mortgage fraud.

The firm specializes in software development to better use AI to make rapid decisions in real time.

Palantir Technologies shares have advanced 1,760% since the launch of its artificial intelligence platform in April 2023. Its market capitalization now stands at $369 billion as of September 8, which puts it among the 30 largest public companies in the world.

I think Shopify (SHOP -1.86%) and Uber Technologies (UBER 1.05%) can surpass Palantir’s current market capitalization within five years. Here’s what that means for shareholders:

• Shopify is worth $189 billion. Its market value must increase 96% to hit $370 billion, in which case the stock would return more than 14% annually over the next five years.
• Uber is worth $197 billion. Its market value must increase 88% to hit $370 billion, in which case the stock would return more than 13% annually over the next five years.

Importantly, the S&P 500 (^GSPC 0.27%) has historically advanced roughly 10% per year, so my predictions almost certainly imply market-beating returns for Shopify and Uber shareholders. Here’s why I’m confident.

Image source: Getty Images.

1. Shopify

Shopify reported excellent financial results in the second quarter, beating estimates on the top and bottom lines. Revenue increased 31% to $2.6 billion as growth accelerated across North American, Europe, and Asia-Pacific. Non-GAAP net income increased 35% to $0.35 per diluted share.

The investment thesis for Shopify centers on its leadership in e-commerce software. Its platform helps merchants manage their businesses across physical and digital storefronts from a single dashboard. The company also provides adjacent solutions for payments, advertising, logistics, and cross-border commerce.

Shopify is focused on several strategic growth areas, including business-to-business (B2B) commerce, a category that is three times bigger than business-to-consumer (B2C) commerce and growing just as quickly. Forrester Research last year recognized Shopify as a leader in B2B commerce solutions, validating its push into the market. The company said B2B sales increased 101% in the second quarter.

Shopify is leaning into demand for artificial intelligence (AI). Shopify Magic is a suite of AI features that help merchants automate tasks like writing product descriptions, generating marketing content, and providing customer support. Additionally, the company earlier this year introduced an AI tool that builds entire online storefronts from a few keywords.

Wall Street expects Shopify’s earnings to increase at 34% annually during the next three to five years. That makes the current valuation of 81 times earnings look somewhat expensive. But if Shopify meets the consensus estimate, its price-to-earnings multiple could fall to 38 while its market value increased 100% to $378 billion by mid-2030. That means Shopify can surpass Palantir’s current market value within five years.

2. Uber Technologies

Uber reported encouraging financial results in the second quarter. beating the consensus estimate on the top line and matching the consensus estimate on the bottom line. Revenue increased 18% to $12.7 billion, an acceleration from 14% growth in the previous quarter, because of strength in the mobility and delivery segments. GAAP net income increased 34% to $0.63 per diluted share.

Uber may not be top of mind when investors think about artificial intelligence stocks, but the company uses AI to set prices, match drivers and riders, and optimize routes. Moreover, its position as the largest on-demand mobility and delivery platform in the world makes it an ideal partner for autonomous driving companies that want to commercialize robotaxi services.

Uber has partnered with 20 autonomous driving companies, including Alphabet‘s Waymo, Pony AI, and WeRide. Robotaxis are already available on its platform in four markets: Atlanta, Austin, and Phoenix in the United States; and Abu Dhabi in the United Arab Emirates. Uber expects about five more deployments in 2025, with more to follow in 2026.

Additionally, Uber in some cases is helping partner companies develop autonomous driving technology. “An underappreciated aspect of our strategy is just how central we are to the real-world AI revolution,” said CEO Dara Khosrowshahi in prepared remarks. “The advanced AI systems that perceive, predict, and make split-second decisions on the road need enormous amounts of data, and Uber has the most relevant mobility ride-hail dataset in the world.”

Wall Street expects Uber’s earnings to increase at 22% annually over the next three to five years. That makes the current valuation of 16 times earnings look relatively cheap. And if Uber meets that consensus, its price-to-earnings ratio could fall to 12 while its market value increased 105% to $387 billion by mid-2030. That means Uber can surpass Palantir’s current market value within five years.

Shares of Palantir Technologies (PLTR -2.04%) fell today, finishing down 2%, but fell as much as 5.2% earlier in the day. The drop came as the S&P 500 (^GSPC -0.32%) lost 0.3% and the Nasdaq Composite (^IXIC -0.03%) was flat.

The artificial intelligence (AI) powerhouse saw shares slide after news that semiconductor tariffs could soon hit chipmakers, sparking fears that margins could be impacted for companies that rely on inference like Palantir.

Trump says chip levies are coming

At a dinner last night with Silicon Valley CEOs, President Donald Trump said that companies that do not shift production to the U.S. will soon face a “fairly substantial” tariff on the chips they sell into the U.S. Trump did, however, indicate there would be exceptions, though the details are unclear.

While this doesn’t affect Palantir directly, it could lead to the cost of inference rising, which investors seemed to believe could impact Palantir’s margins.

Image source: Getty Images.

Additionally, a weak jobs report further raises questions about the health of the broader economy. While this can spur interest rate cuts, which in turn tend to lift equity prices, it could indicate that a recession is approaching, which would likely impact Palantir’s sales.

Palantir’s valuation weighs on the stock

I don’t think that chip tariffs will have a sizable impact on inference costs, and even if it does, Palantir would be minimally affected. However, the jobs data is concerning. Palantir’s incredible valuation means that the company cannot afford to have anything less than stellar quarter after stellar quarter. Even if the economy is healthy, I don’t believe the company can deliver what its stock price demands: perfection.

Therefore, I would stay away from Palantir stock at this price.

In the tech and business world, no topic has been harder to avoid than artificial intelligence (AI). Over the past couple of years, it has been the topic. With this surge in interest has come a rise in the valuations of many tech stocks as investors rush to capitalize on new growth opportunities.

No two companies have benefited more from the AI hype than Nvidia (NVDA -3.38%) and Palantir (PLTR -0.89%). It has propelled Nvidia to the world’s most valuable public company and pushed Palantir’s stock price up over 810% since the beginning of 2024.

Both companies have produced generational returns, but if you had to choose one of the growth stocks to invest in, which is the better choice?

Image source: Getty Images.

What Nvidia has going for it

Nvidia is undoubtedly one of the most important companies in the AI world. It produces graphics processing units (GPUs) that power data centers, making it possible to train, deploy, and scale AI as we know it today. In its latest quarter, Nvidia’s data center revenue increased 56% from a year ago to $41.1 billion (88% of its total revenue).

Nvidia makes GPUs for gaming consoles, automotive applications, and networking, but data centers are its bread and butter. The company plans to go all in on becoming an AI infrastructure company.

This pivot has worked out in Nvidia’s favor and is expected to continue doing so, as the company anticipates AI infrastructure spending to increase between $3 trillion and $4 trillion over the next five years from some of AI’s largest spenders, including the “Magnificent Seven” stocks. Nvidia expects it can capture up to 70% of this spending.

What Palantir has going for it

Palantir is a software company that uses AI to turn vast amounts of data into actionable insights. It’s not as important to the AI ecosystem as Nvidia, but its use cases are continuously growing, which has fueled its growth over the past couple of years. Palantir’s initial focus was on government entities, such as the Department of Defense, CIA, and FBI, but it has expanded and shown it can be successful in the commercial sector, too.

Its U.S. government segment is still the bulk of its revenue (42% of total revenue), but its U.S. commercial segment is its fastest-growing segment. In the second quarter, U.S. commercial revenue grew 93% year over year to $306 million. The growth of both segments helped Palantir achieve its first billion-dollar quarter, more than doubling its revenue from just three years ago.

PLTR Revenue (Quarterly) data by YCharts

Palantir’s AI Platform (AIP) is responsible for its recent commercial success. As it continues to gain adoption across various industries, Palantir should see its revenue base diversify, enhancing its long-term appeal.

What downsides does each company have?

Nvidia’s largest “roadblock” is that it’s in the middle of a volatile relationship between the U.S. and China. The Trump administration imposed a ban on sales of the H20 chip (Nvidia’s China-compliant AI chip) to China in April, but reversed the decision in July after Nvidia agreed to pay the government a 15% tax on AI chip revenue generated in China (the deal is in place, but has not yet been finalized). It’s worth keeping an eye on how this plays out.

Palantir’s downside is its reliance on U.S. government contracts. These contracts can provide lucrative opportunities, but they can also be subject to changing government budgets and political priorities. As volatile as the current political environment is, it wouldn’t be far-fetched for some of these contracts to be restructured or canceled completely. Palantir’s commercial business is growing, but it still relies on U.S. government contracts to keep the lights on.

You can’t ignore how each company is valued

Although both companies have great growth prospects, you can’t decide on which is the better one to own without looking at their valuations. As of Aug. 28, Nvidia is trading at 41 times its forward earnings, while Palantir is trading at 242 times its forward earnings.

NVDA PE Ratio (Forward) data by YCharts

Nvidia’s 41 forward P/E ratio is expensive by most standards, but Palantir’s valuation is one of the highest in history. It has gotten to the point where an Economist article mentioned that Palantir “might be the most overvalued firm of all time.”

When I think of which is the better stock to own, I think about which one has more margin for error because growth stocks are known for being volatile — especially ones propped up by AI hype. Nvidia has little room for error with its valuation, but Palantir has virtually no room for error at its current valuation.

In my opinion, that makes Nvidia the better choice between the two.

Interest in artificial intelligence went parabolic following the release of ChatGPT in late 2022. Since then, Nvidia stock has advanced 1,090% to a market value of $4.2 trillion. And Palantir Technologies stock has climbed 2,340% to a market value of $370 billion. That means the companies are collectively worth $4.6 trillion.

I predict Meta Platforms (META -1.69%) will surpass that figure in no more than five years (i.e., before the end of 2030). The company is currently worth $1.9 trillion, which means its share price must increase by about 247% for its market value to reach $4.7 trillion. Here’s why I think that could happen.

Image source: Getty Images.

Meta Platforms is a digital advertising giant with deep AI expertise

Meta Platforms owns three of the four most popular social media platforms as measured by monthly active users. That competitive advantage lets it collect consumer data on a tremendous scale, and that data helps brands target ad campaigns. As a result, Meta is the second-largest adtech company worldwide and is likely to gain market share, according to Morningstar.

Meta has already made strides in boosting engagement with artificial intelligence (AI). CEO Mark Zuckerberg told analysts on the second-quarter earnings call, “Advancements in our recommendation systems have improved quality so much that it has led to a 5% increase in time spent on Facebook and 6% on Instagram.” He also said that advertising conversion rates increased across both social media platforms, meaning more clicks and purchases.

Importantly, Meta is investing aggressively in AI infrastructure and aspires to automate the entire ad creation process by next year. The Wall Street Journal writes, “Using the ad tools Meta is developing, a brand could present an image of the product it wants to promote along with a budgetary goal, and AI would create the entire ad, including imagery, video, and text.”

Meta’s Orion smart glasses could be the next big consumer electronics product

Meta Platforms is the market leader in smart glasses, a nascent market where shipments more than tripled last year and are forecast to increase faster than 60% annually through 2029. And Meta is actually gaining market share. Its Ray-Ban smart glasses accounted for nearly three-quarters of shipments in the first half of 2025, up from 60% in 2024.

Counterpoint Research writes, “Ray-Ban Meta smart glasses redefine the smart glasses experience by integrating wearable AI while combining a stylish design with enhanced smart functionalities.” The company sees a large opportunity on the horizon. Zuckerberg believes smart glasses could replace smartphones as the personal computing form factor of choice within the next 15 years.

To capitalize, Meta announced Orion last year, smart glasses that incorporate augmented reality (AR) that overlays the physical world with holographic displays. The company will not commercialize the product for several years while it works to make the technology less expensive. However, smart glasses that blend AR and AI could be revolutionary, as they would enable wearers to search the internet, talk with friends, and watch media content without phones.

Apple rose to great heights following its introduction of the iPhone in 2007. If Zuckerberg is correct about smart glasses being the next big breakthrough in consumer electronics, Meta could become the Apple of the next decade, which means its market value could increase substantially in the years ahead.

Meta Platforms could be a $4.7 billion company by mid-2030

To summarize, Meta has a strong presence in digital advertising and a leadership position in smart glasses. Adtech spending is forecasted to grow at a rate of 14% annually through 2032, while smart glasses sales are projected to increase by more than 60% annually through 2029. In total, that gives Meta a reasonable shot at annual earnings growth of 20%+ in the next five years.

That outlook makes the current valuation of 26.7 times earnings seem quite reasonable. And if Meta does grow earnings at 20% annually over the next five years, its share price could increase by 149% without any change in the price-to-earnings (P/E) ratio. That would bring its market value to $4.7 trillion by mid-2030, surpassing the current combined market value of Nvidia and Palantir.

Palantir Technologies (PLTR +0.01%) has arguably been the biggest winner of the artificial intelligence (AI) boom over the past three years. Its AI-driven platforms offer incredible benefits for users, and it operates in a niche space with sticky business.

There’s no question that performance is strong and the runway is long. However, having climbed nearly 2,000% over the past three years, Palantir stock has become obscenely expensive. It trades at a price-to-sales ratio of 118 and a forward one-year P/E ratio of 256. Given the high opportunity but rich price, is Palantir stock a smart buy today?

Image source: Getty Images.

Why Wall Street is wild over Palantir

Given its niche area of operation, it’s somewhat surprising that Palantir has become one of the most popular stocks to follow. It’s not like AI giants Nvidia and Amazon, both of which play a central role in the general development of AI as a global phenomenon.

But it’s exactly the niche aspect of Palantir that makes it so enticing today. It offers a product that can manage pain points for large organizations, and the specialized platform means there isn’t a lot of competition in this space.

Palantir uses AI for data collection and organization, transforming how companies process their data and leading to quick and clear action. It brings disparate systems together, unifying data across one central control board and allowing managers to detect patterns that would otherwise have taken much more time and manpower.

The company has several products geared to different types of organizations, and its U.S. commercial business is its core product today, increasing 93% year over year in the second quarter.

Total revenue was up 68% over last year to $733 million, and government revenue increased 53%.

Today’s Change

(0.01%) $1.30

Current Price

$158.02

Key Data Points

Market Cap

$375B

Day’s Range

$153.09 – $158.23

52wk Range

$29.31 – $190.00

Volume

2.1M

Avg Vol

77M

Gross Margin

80.03%

Dividend Yield

N/A

The company closed $2.27 billion worth of contract value in the second quarter, up 140% from last year, with 42 contracts worth $10 million or more. Customer count was up 43%.

There are vast opportunities for Palantir to change company processes in many categories, automating systems and accelerating the pace of business.

Beyond its high growth, Palantir has many features that stand out. One is its long-term contracts, creating a “sticky” environment and a recurring revenue stream. The high contract value means money will be flowing into Palantir’s coffers for years, and they’re lucrative: the company scored 157 new contracts of at least $1 million in the second quarter. With the increases in customer count, value will continue to increase, setting Palantir up for many years of growth.

It’s also extremely profitable, with $567 million in free cash flow at a 57% margin in the second quarter and operating income that more than doubled as well as a 27% margin.

Is Palantir stock a smart buy today?

It’s not just Palantir stock that’s expensive. The market looks frothy all over, and inflated valuations are a setup for some sort of correction. However, Palantir stock stands out for its sky-high valuation.

Palantir stock has been expensive for a while, and it keeps rising anyway. The opportunity is enormous, and the company has a strong moat in its exclusive technology and algorithms that have been developed over years. Plus, it has long-term contracts with established clients, including the U.S. defense industry. That’s why investors are paying a premium for this stock.

If you have some appetite for risk and a long time horizon, you might want to buy Palantir stock with a dollar-cost averaging strategy. That allows you to benefit from buying at different price points instead of investing at what could end up being a high. 

The past couple of years have been something of a whirlwind for Palantir (PLTR -2.52%) stock investors. When the artificial intelligence (AI) revolution kicked off in late 2022, it played to the company’s strengths. With 20 years of data mining experience and AI expertise, Palantir quickly developed its Artificial Intelligence Platform (AIP), which has become the premier software system helping businesses make data-driven decisions. By integrating with existing business systems and layering generative AI on top, Palantir provides actionable insights in near real-time. Since the release of AIP in April 2023, Palantir has become a massive multibagger, with the stock soaring 1,760%.

However, the stock’s frothy valuation and questions about the ongoing adoption of AI have investors climbing a wall of worry, with many looking for signs that the AI revolution is on track.

Nvidia (NVDA -0.01%) has just provided the surest sign yet that the relentless adoption of AI is continuing.

Image source: Getty Images.

Enviable results

Despite facing tough triple-digit comps, Nvidia’s results were robust by any measure. During its fiscal 2026 second quarter (ended July 27), the company generated record revenue of $46.7 billion, up 56% year over year and 6% quarter over quarter. This drove adjusted earnings per share (EPS) of $1.05, which climbed 54% year over year.

For context, analysts’ consensus estimates were calling for revenue of $46.1 billion and EPS of $1.01, so Nvidia scaled both bars with room to spare.

A record-setting performance from the data center segment fueled the bullish results. The segment, which includes chips used for AI, data centers, and cloud computing, generated sales that surged 56% year over year to $41.1 billion, driven by the ongoing adoption of AI.

It’s important to note that export restrictions prevented the sale of H20 chips to China during the quarter, which weighed on the results. Those restrictions have since been rescinded, and Nvidia is working on a follow-up to the H20, based on its Blackwell architecture — reportedly dubbed the B30A. The company is in talks with the U.S. government to determine the limitations of the new data center chip for customers in China.

The icing on the cake was a new record-setting stock buyback plan. Nvidia announced a $60 billion share repurchase authorization, in addition to the $14.7 billion remaining on its previous buyback plan. Share repurchases are generally a sign of management’s confidence that the company’s stock is undervalued.

What does this all have to do with Palantir?

Beyond the good news for Nvidia investors, the results have broader implications about what’s happening across the AI landscape. Nvidia has long been the bellwether for AI adoption, and despite the market’s tepid response to its report, the results help put things into perspective.

While Nvidia’s 56% growth is impressive by any measure, it comes on top of 122% growth in the prior-year quarter. This helps to illustrate the continuing demand for AI infrastructure as more companies adopt this groundbreaking technology.

It also gives additional weight to Palantir’s equally robust results released earlier this month. In the second quarter, revenue surged 48% year over year (and 14% quarter over quarter) to $1 billion. This powered adjusted earnings per share (EPS) of $0.16, which surged 78% year over year.

Yet the overall results mask the truly phenomenal performance by the company’s U.S. commercial segment, which includes AIP. Revenue for the segment soared 93% year over year to $306 million, while its customer rolls increased 64%, fueled by record demand for AIP. Future demand looks even brighter as the segment’s total contract value soared 222% to $843 million. Even more impressive is Palantir’s remaining performance obligation (RPO), or contractually obligated sales that aren’t yet included in revenue, which soared 77% year over year to $2.42 billion.

The fact that Nvidia’s industry-leading graphics processing units (GPUs) continue to sell like hotcakes shows the ongoing momentum of AI adoption, which bodes well for Palantir.

The biggest AI-centric problem facing most business leaders is the lack of expertise required to implement AI into their operations, while ensuring a reasonable return on their investment. Palantir’s quarterly reports are rife with customer testimonials that detail just that.

For example, after deploying AIP, Cleveland Clinic reported a 38-minute decrease in emergency room wait times, a 40% reduction in unused orthopedic operating room time, and a 75% reduction in time spent calculating bed capacity. That’s one of dozens of AIP success stories.

To be clear, there’s still the matter of Palantir’s valuation to consider. The stock is currently trading for 185 times next year’s expected earnings. While that’s an egregious valuation to be sure, it might seem like a bargain five to 10 years down the road. CEO Alex Karp recently revealed ambitious plans to 10X revenue in the coming years. Given the company’s current growth rate, it could achieve that lofty benchmark at some point over the next decade.

For investors wanting in on the action but put off by Palantir’s exorbitant earnings multiple, I’d suggest establishing a small position and using dollar-cost averaging to build out a stake.

Palantir (PLTR -0.98%) stock saw another pullback in Monday’s trading. The company’s share price closed out the daily session down 1% but had been down as much as 5.9% shortly before 10 a.m. ET. The S&P 500 (^GSPC -0.43%) ended the day down 0.4%, and the Nasdaq Composite (^IXIC -0.22%) was down 0.2%.

While there doesn’t appear to have been any major business news behind Palantir’s valuation contraction today, the broader market saw moderate selling pressures that seem to have impacted the stock. The stock is now down 10% over the last week of trading and 16% from its all-time high.

Image source: Getty Images.

Is Palantir stock a buy right now?

Palantir is one of the strongest overall players in the artificial intelligence (AI) software space, and it’s been posting momentous sales and earnings growth. On the other hand, it’s not as if the company hasn’t already gotten a lot of valuation credit for its strong business growth and long-term expansion opportunities.

PLTR PE Ratio (Forward) data by YCharts

Trading at approximately 90 times this year’s expected sales and 242 times expected non-GAAP (generally accepted accounting principles) adjusted earnings, Palantir has a valuation profile that stands out as being extraordinarily growth dependent even among the field of high-flying AI stocks. Despite the stock seeing a significant pullback from its all-time high, Palantir is still up 108% across 2025’s trading and 1,840% over the last three years.

Recent sell-offs connected to macroeconomic risk factors and concerns about the current state of practical business applications for AI technologies are a reminder of the high level of risk that comes with investing in a company that already has a lot of explosive growth priced into its valuation. Along those lines, Palantir is probably still too richly valued to be a sensible investment for investors without very high levels of risk tolerance.

While I think the stock looks quite risky right now, I also think that it has a good chance of significantly outperforming the broader market over the next five years. In addition to very strong momentum with private-sector customers, Palantir’s heavy exposure to the defense industry suggests that the stock comes with characteristics that help offset some of the risks associated with the biggest sources of potential geopolitical destabilization for the market.

At the moment, just 11 publicly traded companies can claim a market capitalization above $1 trillion.

That elite trillion-dollar club includes tech juggernauts such as Nvidia (NVDA 1.65%), Microsoft, Apple, Alphabet, Amazon, Meta Platforms, Broadcom, Taiwan Semiconductor, Tesla, along with Warren Buffett’s diversified conglomerate Berkshire Hathaway and oil giant Saudi Aramco.

Among them, Nvidia reigns supreme. With a market cap of roughly $4.4 trillion, it’s the most valuable company in the world.

Not only do I think Nvidia is positioned to maintain that crown, I also expect it to remain worth more than Tesla, Berkshire Hathaway, and ambitious AI player Palantir Technologies combined over the next five years, thanks in no small part to the transformative potential of its quantum computing business.

Quantum computing is the next frontier of AI

Quantum computing is widely regarded as the natural successor to classical computing. Traditional computers store and process information in binary formats — 0s and 1s. Quantum machines use qubits — units that can have values of 1 or 0, but also can exist in complex linear states that are combinations of 1 and 0 through a phenomenon known as superposition. 

In theory, this gives quantum computers the ability to rapidly tackle problems that would take today’s most advanced supercomputers prohibitive amounts of time to solve — from cracking high-level cryptography to drug discovery to climate modeling.

Although the quantum computing industry remains in its infancy, expectations are sky-high. Global management consulting firm McKinsey & Company projects that breakthroughs in quantum applications could generate trillions in economic value over the coming decades.

Image source: Getty Images.

How Nvidia is playing a critical role in the quantum era

A wave of smaller innovators is attempting to make headway in the quantum computing landscape, exploring avenues such as trapped-ion technology, annealing, and photonic qubits in a race to unlock the next generational breakthrough.

Nvidia, by contrast, isn’t positioning itself as a singular hardware architecture. What investors may not fully appreciate is that the company is already deeply embedded in the quantum ecosystem. Its graphics processing units (GPUs) are increasingly being used to run advanced simulations, particularly in hybrid systems that bridge quantum and classical computing.

Yet Nvidia’s true differentiator lies not in hardware but in software. The company’s CUDA computing platform, long the backbone of AI infrastructure, is now being adapted into CUDA-Q — a platform designed to support quantum applications on the next generation of processors.

By building this bridge between hardware and software, Nvidia is positioning itself as an indispensable layer for scaling quantum development, regardless of which architectures and approaches succeed and reach critical scale. This strategy gives the company asymmetric exposure to AI’s next trillion-dollar opportunity, reinforcing its potential for continued valuation expansion over the long term.

Why Berkshire, Tesla, and Palantir could lag through 2030

Against this backdrop, it’s worth examining the valuation profiles of the three companies that I don’t expect even combined to surpass Nvidia in the next five years.

• Berkshire Hathaway: As a mature and diversified conglomerate, Berkshire is now widely regarded as a steady compounding machine rather than a disruptive, growth-oriented force reshaping industries. Investors typically refrain from assigning premium multiples to businesses of this type. While it certainly has upside potential and the opportunity to generate respectable returns over the next five years, Berkshire’s valuation profile lacks the explosive appeal of Nvidia.
• Tesla: Tesla already carries a frothy valuation fueled by investor enthusiasm for its AI-driven ambitions — most notably its plans for a robotaxi fleet and its humanoid robot, Optimus. The challenge, however, is that the scalability of these initiatives remains unproven. Both the autonomous vehicle and robotics markets are highly competitive, and Tesla risks a sharp valuation reset if investors begin to lose patience with the company’s execution or management’s ability to deliver on its aggressive timelines.
• Palantir: Palantir has successfully branded itself as a mission-critical enterprise software provider, uniquely positioned to capture the flow of AI investment as it moves downstream from infrastructure to applications. Still, challenges remain. The company faces formidable competition from Microsoft, fast-growing unicorn Databricks, and specialized players like BigBear.ai and C3.ai. Palantir’s investment profile over the next several years looks vulnerable. With its valuations already stretching beyond their historical norms, any news that shows a misalignment between investors’ lofty expectations and the reality of Palantir’s growth fundamentals could send the stock plummeting.

In 2030, Berkshire will likely remain a durable pillar of investment stability. Meanwhile, Tesla and Palantir may dazzle intermittently, but if they cannot keep pace with the dynamics of their respective competitive landscapes, investors’ enthusiasm for them could wane.

On the other hand, by the start of the next decade, Nvidia could occupy a key position at the intersection of AI and quantum computing. With the potential to become a core player in that hardware and software ecosystem, Nvidia represents the ultimate technology stack of the quantum era. If it succeeds there, that would allow it to justify a valuation that could easily eclipse many of today’s industry leaders combined.

Aug. 1 (UPI) — Denver-based software firm Palantir Technologies secured a 10-year contract worth up to $10 billion to improve the U.S. Army’s military readiness and efficiency with artificial intelligence.

Palantir specializes in developing software that enables the use of AI to make real-time decisions, such as those that the U.S. Army could face in the future.

The contract supports the Army’s sustained capability growth and enhances its ability to meet operational warfighting needs with proven [and] commercially available AI technologies, it said in an online announcement on Thursday.

“This enterprise agreement represents a pivotal step in the Army’s commitment to modernizing our capabilities while being fiscally responsible,” Army Chief Information Officer Leo Garciga said.

The enterprise agreement with Palantir will help the Army to save money while improving its operational efficiency and military readiness through a “comprehensive framework for the Army’s future software and data needs,” according to the announcement.

“By streamlining our procurement processes and leveraging enterprise-level discounts, we are not only enhancing our operational effectiveness but also maximizing our buying power,” Garciga added.

The Army will consolidate 15 prime contracts and 60 related contracts into one enterprise agreement with Palantir, which accelerates the delivery of proven commercial software to the Army’s military units.

“This streamlined approach reduces procurement timelines, ensuring soldiers have rapid access to cutting-edge data integration, analytics and AI tools,” according to the Army.

The contract also saves money by eliminating contract and pass-through fees, while reducing procurement timelines.

The contract enables the Army and other Defense Department to pay up to $10 billion over 10 years to obtain Palantir products, but it does not require the military to spend the full $10 billion.

Palantir earlier this year provided the Army with two AI-powered systems as part of a $178 million contract, according to a CNBC news report.

The Defense Department in May also increased to $795 million an existing contract with Maven Smart Systems to improve the military’s AI capabilities.

May 28 (UPI) — Financial giant Fannie Mae said Wednesday it will launch its AI-powered unit to detect and prevent mortgage fraud in a partnership with AI software company Palantir.

“By integrating this leading AI technology, we will look across millions of datasets to detect patterns that were previously undetectable,” said Fannie Mae’s president and chief executive officer Priscilla Almodovar.

Fannie Mae, which holds more than $4 trillion in U.S. housing market assets, is the nation’s single largest holder of outstanding residential mortgage debt.

The launch of its new artificial intelligence-powered crime detection unit with Palantir seeks to expand Fannie’s ability to sniff out fraud with “leading” scientific and investigative AI-enabled tech.

The Washington-based Fannie Mae says its new capability will prevent and detect fraudulent activity with a “speed and precision” that, according to the company, has “never before” been seen designed to save millions of dollars in future financial losses to fraud in the U.S. housing market.

“This new partnership will combat mortgage fraud, helping to safeguard the U.S. mortgage market for lenders, homebuyers and taxpayers,” Fannie’s Almodovar continued.

Fannie Mae, which likewise owns or guarantees roughly one in four single-family mortgages and about 20% of America’s multifamily mortgages, says Palantir’s technology will provide “expansive” monitoring for anomalous transactions, activities and other digital behaviors.

According to Fannie officials, it will not only detect suspicious activity but ultimately will “trigger investigative action.”

“No one is above the law,” Fannie Mae Chairman William Pulte said in a statement.

Palantir was one of eight major tech firms to sign on to then-President Joe Biden‘s voluntary commitment in 2023 aimed to ensure AI tech is utilized responsibly.

On Wednesday, its top official said the Fannie Mae partnership will set off “a revolution in how we combat mortgage fraud” in the United States.

“We are bringing the fight directly to anyone who attempts to defraud our mortgage system and exploit hardworking Americans,” says Alex Karp, co-founder and CEO of Palantir Technologies.