nvidia(NASDAQ: NVDA) and Palantir Technologies(NASDAQ: PLTR) Two of the biggest winners of the stock market in the past few years – they offered the best performance at Dow Jones Industrial Average and S&P 5002024 each.
Investors love these stocks for their position in the high-growth artificial intelligence (AI) market. Nvidia is one of the world’s leading AI chip designers, and Palantir sells a popular AI-driven software platform that will help customers access their data better. Both of these companies have reported rising revenue and demand, making their long-term outlook appear brighter.
But Wall Street recommends buying 1 of these players. According to Wall Street average price forecasts, one of these stocks is expected to rise nearly 20% over the next 12 months, while the other is expected to fall 25%. Take a closer look at each one and find out which Wall Street is preferred now.
Image source: Getty Images.
Nvidia is the world’s AI chip leader and is offered Graphic Processing Unit (GPU) It surpasses everything else in the market. They are more expensive than their rivals, but the company says that if they gain efficiency over time, its total cost of ownership decreases. Therefore, Nvidia GPUs can actually be the cheapest option for customers if they commit to customers over the long term.
However, Nvidia didn’t have to worry about attracting customers. Demand for the latest architecture and chips, Blackwell surpassed supply as the platform was launched a few months ago. Blackwell generated $11 billion in revenue in the market in the first quarter. And the pledge to renew Nvidia’s chips every year must maintain this growth.
Of course, the AI giant faces such a rival Advanced Micro Devicesand even Nvidia’s own customers have, in some cases, become rivals to make their own chips. (They haven’t abandoned Nvidia, but they use their own chips in addition to the Nvidia GPU.) Still, there is enough demand for the growth of the AI market to ensure that Nvidia stays on top and others are successful.
Palantir’s business may not seem very exciting at first. The company provides software that is driven by AI, aggregating and working different data from its customers. But what sounds simple or mediocre actually drives some very exciting results. On the battlefield, for example, it helps the army make faster and better decisions. Regarding commercial use, customers Red River Palantir’s software helps you tackle problems you didn’t think were possible by accessing unstructured data.
In the early days of Palantir, the government was the biggest client, but recently commercial growth began. Companies in the sector are rushing to Palantir’s Artificial Intelligence Platform (AIP) to help resolve problems and implement new processes and strategies. In the most recent quarter, Palantir’s commercial business has brought double-digit revenue growth, and government operations continue to do the same. Therefore, Palantir has two high-growth businesses, and there is a reason to be optimistic about the future given the company’s comments on recent demand.
One issue with investing in Palantir is the valuation of the stock. It trades 232 times a noble Prospects of revenue. However, it is important to remember that this only takes into account revenue forecasts next year and does not take into account the company’s outlook in the long run.
So, which of these two would Wall Street recommend buying? Around 30 Wall Street companies have positive recommendations such as buying and outperforming at NVIDIA, with an average 12-month price forecast showing a profit of 19% from the closing price on June 12th.
As for Palantir, only two people, Wedbush and Bank of America Securities, have positive recommendations for the stock, as nine Wall Street analysts have neutral or negative ratings on the stock. Average price forecast means a 25% decline in stocks over the next 12 months.
Therefore, Wall Street clearly recommends buying nvidia via Palantia, much of this is related to a sudden evaluation of Palantia.
Considering all the points above, Nvidia stands out as a better purchase for now for most AI investors, especially when it’s cautious or focused on value. However, active investors may still want to add Palantier to their holdings. The company’s revenue continues to rise, demand is strong, and the AI market is booming. All this could create a long-term victory recipe for Palantir shareholders, even those who are buying at today’s prices.
Consider this before purchasing shares on Nvidia.
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Adria Cimino There is no position in any of the stocks mentioned. Motley Fools is located and recommends advanced microdevices, Nvidia and Palantir Technologies. To Motley’s fool Disclosure Policy.
