Nvidia (NVDA) and Palantir Technologies (PLTR) remain two of the hottest AI stocks on Wall Street after both companies delivered strong quarterly results. In terms of growth, both Nvidia and Palantir posted strong revenue growth rates and remain profitable. But valuation is where the difference becomes clear. Nvidia trades at around 23 times forward earnings, which many investors see as reasonable given its rapid growth. In contrast, Palantir trades at more than 100 times forward earnings — over four times higher than Nvidia on that measure.
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NVDS: built for a short position on NVDAUsing TipRanks’ Stock Comparison Tool, we have compared NVDA and PLTR to see which stock offers higher upside to investors. Nvidia stock currently holds a Strong Buy rating, while PLTR has a Moderate Buy rating. In terms of share appreciation, both stocks offer similar upside of over 35%.
For context, Nvidia is a global leader in AI chips and computing, powering data centers, robotics, and autonomous driving technology. Meanwhile, Palantir focuses on AI software for government and business clients. NVDA is up about 18% year to date, while PLTR has fallen more than 20% over the same period.
Let’s look at these stocks in detail.
Nvidia (NASDAQ:NVDA) Stock
Yesterday, Nvidia delivered another strong quarter, with revenue jumping 85% year-over-year to $81.6 billion. The company beat Wall Street expectations and also issued strong guidance for the next quarter. However, NVDA stock still fell nearly 2% after earnings, as investor expectations remained extremely high.
Despite the strong results, supply constraints raised fresh concerns. CEO Jensen Huang said Nvidia expects supply shortages throughout the life cycle of its upcoming Vera Rubin AI platform. The company also said during its Q1 earnings call that while the U.S. government has approved licenses for H200 chip exports, Nvidia remains uncertain about future import approvals.
On the plus side, Nvidia announced major shareholder rewards, highlighting the huge cash flow. The company approved a new $80 billion share buyback program and raised its quarterly dividend from $0.01 to $0.25 per share.
Analysts Stay Bullish on NVDA
Following the results, Wall Street analysts remained highly bullish on Nvidia stock. Five-star-rated analyst Joseph Moore at Morgan Stanley raised his price target on NVDA to $288 from $285 while maintaining a Buy rating. He described the earnings report as a “clean beat and raise” across key metrics. Moore also said the upcoming Nvidia Vera Rubin platform should further strengthen the company’s leadership in AI infrastructure and data center economics.
Meanwhile, Raymond James’ top-rated analyst Simon Leopold raised his price target on Nvidia to $330 from $323 and kept a Strong Buy rating. He highlighted stronger-than-expected Q1 results and Q2 guidance, driven by AI inference demand and market share gains. Leopold also pointed to Nvidia’s buyback authorization and major dividend increase as additional positives for shareholders.
Palantir Technologies (NASDAQ:PLTR) Stock
Like Nvidia, Palantir also delivered a blockbuster quarter. For Q1 2026, PLTR reported earnings per share of $0.33, beating estimates of $0.28, while revenue surged 85% year over year to $1.63 billion.
Palantir’s U.S. business remained its biggest growth driver. U.S. revenue jumped 104% to $1.28 billion, with commercial revenue rising 133% and government revenue up 84%. However, despite the strong results, PLTR stock faced pressure due to valuation concerns.
In terms of growth, both Nvidia and Palantir are posting similar revenue growth rates and remain profitable. But valuation is where the difference becomes clear. Nvidia trades at around 23 times forward earnings, which many investors see as reasonable given its rapid growth. In contrast, Palantir trades at more than 100 times forward earnings — over four times higher than Nvidia on that measure.
Wall Street Is Bullish on PLTR after Q1 Earnings
Recently, Rosenblatt Securities’ four-star-rated analyst John McPeake reiterated his Buy rating on PLTR, implying an upside of over 60%. McPeake noted that PLTR stock has fallen sharply this year, but said he is now more confident in his $225 price target. He also believes Palantir could eventually reach a $1 trillion market value over the next five years, implying a long-term price target of $415.
Similarly, Truist Financial’s analyst Arvind Ramnani reiterated a Buy rating on Palantir Technologies with a $223 price target, saying the company continues to deliver strong growth and remains a key player in enterprise AI.
He noted that Palantir’s revenue growth has accelerated for 11 straight quarters, while many software companies are seeing slower growth. Ramnani also highlighted improving profit margins and said PLTR deserves a premium valuation as a leading AI software company.
Conclusion
Nvidia looks like the safer AI stock right now. Its valuation is more reasonable, and its business is much larger. Analysts currently rate NVDA stock a Strong Buy.
Meanwhile, Palantir Technologies is a higher-risk, higher-reward AI stock. The company is seeing strong demand and recurring software revenue, but the stock remains expensive. Analysts currently rate PLTR stock a Moderate Buy.