As we near the end of 2025, AI stocks Nvidia (NVDA) and Palantir Technologies (PLTR) will be remembered for their strong momentum and investor hype. Heading into 2026, both companies are expected to lead the AI sector, backed by solid revenue growth driven by rising demand for AI-powered solutions. Naturally, investors are now wondering which stock is a better long-term buy?
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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. Both are strong long-term AI plays—but they serve different parts of the AI boom. Let’s take a closer look.
Nvidia (NASDAQ:NVDA)
Nvidia’s stock has climbed roughly 35% year-to-date. After strong gains earlier in the year, it dropped more than 12% in November as investors pulled back amid AI bubble concerns. The sell-off was also fueled by worries over rising competition, as hyperscalers like Google (GOOGL) are designing their own AI chips.
Additionally, the November sell-off in Nvidia’s stock was driven largely by its high valuation. Nvidia currently trades at a P/E of 43.8, well above the average sector P/E of about 30, which made investors lock in profits. However, its forward PEG ratio of 1.03—much lower than the broader sector average of 1.68, which suggests stronger long-term value despite short-term volatility.
Is Nvidia a Good Stock to Buy Now?
Looking ahead to 2026, Nvidia’s technology is used in major data centers, cloud AI, and autonomous systems, which gives it unmatched industry reach. Its growth has been powered by future earnings expectations, even as investors watch valuation risks. With AI infrastructure expanding aggressively in 2025, 2026 could mark the next big phase where this build-out turns into larger revenue, keeping Nvidia at the center of the AI supercycle.
In addition, NVDA stock remains a favorite among Wall Street analysts. Most recently, five-star-rated analyst Joseph Moore at Morgan Stanley raised his price target on NVDA stock from $235 to $250, signaling a potential upside of 37% from current levels. Moore believes Nvidia still delivers the strongest mix of low cost and high performance for AI computing. This advantage continues to be the key reason companies rely on Nvidia’s platform for demanding AI tasks, keeping customer demand steady despite rising competition.
Palantir Technologies (NASDAQ:PLTR)
In contrast, PLTR stock has surged over 125% in 2025, driven by rising AI adoption, increased defense spending, and global geopolitical tensions. Similar to Nvidia, Palantir’s premium valuation has also sparked investor debate, with its P/E ratio far above the sector average. Notably, Palantir has a P/E ratio of 394 versus the sector average of 30.3.
Despite this, many investors continue to hold their bullish stance, betting on long-term potential rather than near-term pricing concerns. Adding strength to the optimism, Palantir raised its 2025 revenue guidance to $4.396–$4.40 billion, higher than Wall Street’s estimate of $4.16 billion.
Is PLTR Stock a Good Buy Now?
Unlike Nvidia, Wall Street analysts remain cautious, with many rating it as Hold. Even so, not everyone is sitting on the sidelines.
Among the bulls, Wedbush’s five-star-rated analyst Daniel Ives has the highest price target of $230 on PLTR stock. Ives has shown strong confidence in Palantir’s long-term potential, even calling on investors to “triple down” on the stock. He believes the company could reach a $1 trillion market cap within the next 2–3 years, backed by its unique advantage in enterprise AI.
NVDA or PLTR: Which Stock Offers Higher Upside, According to Analysts?
Using 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, with an average price target of $258.10, implying an upside of 42% from current levels.
On the other hand, PLTR stock carries a Hold consensus among 19 analysts. Palantir’s average stock price target of $183.07 suggests a modest upside of 7%.
Conclusion
Nvidia remains the stronger pick for investors who want to own the backbone of AI hardware. Palantir, on the other hand, offers powerful momentum in enterprise and government AI software. If AI infrastructure spending explodes in 2026, NVDA is best positioned to win big at scale. For now, the safer 2026 breakout bet is Nvidia—while Palantir remains a high-risk, high-reward contender for bold investors.
Analysts also currently favor NVDA, which holds a Strong Buy rating and an estimated 42% upside from current levels.