It has become almost trite to say AI is revolutionizing all aspects of our daily lives. From modes of work to our commercial interactions to our entertainment choices, seemingly every bit of our waking hours has some form of computerized automation present.
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There are a few parallels for the exceptionally rapid ascent of this new technology to the forefront of our consciousness. The numbers certainly provide ample evidence that AI adoption is rocketing forward at breakneck speed.
In a telling example, while it took the popular streaming service Netflix 3.5 years to reach 1 million users, ChatGPT reached this milestone in an astonishing 5 days. Going forward, according to Fortune Business Insights, the AI market is projected to surge by a CAGR of 29.3% during the coming seven years, reflecting massive demand for the constantly advancing technology.
For investors, the trick is to find the companies that have the best prospects of capitalizing on this rising tide of computation to generate value. Two of the biggest winners thus far are Nvidia (NASDAQ:NVDA) and Palantir (NASDAQ:PLTR), and both have seen their share prices shoot up the charts over the past few years.
Nvidia and Palantir have each carved out a unique, leadership niche in their respective lanes, and top investor Oliver Rodzianko, who is among the top 1% of TipRanks’ stock pros, believes that their star power won’t be diminishing anytime soon. Let’s dive in and see why.
Nvidia
Nvidia has become arguably the de facto engine of the AI superhighway, supplying the advanced hardware required to run the increasingly complex models. This is no mere conjecture; Nvidia controls roughly 90% of the data center GPU market and is widely recognized as producing the most advanced chips.
That dominance isn’t making the company complacent. Even with its Blackwell ramp now in full swing, Nvidia is already pressing ahead with its next-gen Rubin architecture, set for release in 2026. On top of that, its CUDA software creates a powerful moat, as the rich, full-stack ecosystem is extremely difficult for rivals to replicate.
The combination of cutting-edge chips and an entrenched software ecosystem has fueled an almost unprecedented rally in Nvidia’s stock. Shares have surged over 270% in the past two years, helping the company vault past the $4 trillion mark to become the world’s most valuable publicly traded firm.
The fundamentals have matched that breathtaking price action. In its Fiscal Q2 2026 earnings report late last month, Nvidia once again shattered records, posting all-time high revenues of $46.74 billion – up 56% year-over-year – alongside exceptional margins in the 70% range.
That doesn’t mean that there aren’t potential bumps on the road, however. Nvidia is heavily reliant on a few key customers, with more than 50% of its sales coming from just three major, unnamed (but easily guessed) hyperscalers. In addition, the company could find itself in the geopolitical crosshairs, as selling to the Chinese market is becoming increasingly difficult.
While acknowledging some difficulties, and focusing on the loss of Chinese revenues in particular, Oliver Rodzianko is not deterred.
“NVDA is still benefiting from an AI investment supercycle and benefits from being the leading GPU supplier to globally integrated open economic architecture,” notes the 5-star investor.
While traditionally a source of significant revenues, Rodzianko admits that China will not be a steady customer going forward. It seems clear to the investor that the Chinese leadership is choosing an isolationist path, and will be favoring domestic-based companies.
Fortunately for Nvidia, the Western appetite for its chips remains the beating heart of the AI race. Name-checking companies such as Microsoft, Amazon, and Google, among others, the investor argues that the U.S. and its European allies are the biggest spenders on the planet.
“Put plainly: the bulk of the $3–4 trillion AI infrastructure supercycle is flowing through Western-aligned capital markets, clouds, and enterprises—this is the very ecosystem that Nvidia dominates and China is constrained from accessing,” adds Rodzianko.
The investor is therefore very comfortable rating NVDA as a Strong Buy, believing that the growth story has plenty of life up ahead. (To watch Rodzianko’s track record, click here)
That’s the consensus on Wall Street as well. With 34 Buys, 3 Holds, and 1 Sell, NVDA boasts a Strong Buy consensus rating. Its 12-month average price target of $210.73 implies a 24% upside for the next 12 months. (See NVDA stock forecast)
Palantir
If Nvidia provides the nuts-and-bolts of the AI revolution, Palantir has succeeded in capturing the excitement of the software possibilities to dramatically increase workload efficiencies.
Though initially founded to support the U.S. defense community, the company has steadily broadened its reach, with a hungry private sector eager to adopt its unique ontological platform to improve real-time decision-making and internal processes.
That broader adoption was on full display in Palantir’s Q2 2025 earnings report, which offered a stunning glimpse of the company’s continued growth. For the first time ever, Palantir broke through the $1 billion revenue mark, while also growing U.S. commercial revenues by 93% year-over-year to $306 million. And momentum has only continued since then, with the company inking a $10 billion, one-year deal with the U.S. Army shortly after Q2 drew to a close.
Such results have not gone unnoticed by investors. Palantir’s share price has skyrocketed almost 2,000% over the past three years. But that kind of explosive ascent has also left investors wrestling with a familiar concern – Palantir’s lofty valuation trades at multiples far above peers.
Rodzianko, however, argues that traditional valuation methods miss the point entirely.
“When valuing Palantir, I’ve argued for a long time that it’s truly useless to attempt peer analysis and intrinsic value analysis, as you will be missing the sustainable sentiment-driven returns that we have witnessed over the past few years and will likely continue to witness for the foreseeable future,” the investor explains.
For Rodzianko, Palantir’s staying power stems not just from numbers but from leadership. With CEO Alex Karp and Chairman Peter Thiel steering the ship, Rodzianko believes the company earns “durable ultra-premium valuations” that are here to stay. The investor points to evidence that supports this confidence, highlighting a net dollar retention rate of ~128%, rapid AIP bootcamp adoption averaging just five days, and the outsized growth in U.S. commercial revenues as proof of the platform’s scalability.
“With a company as strong as this with recurring 30–40% top and bottom line annual growth rates on consensus moving forward, you don’t need to overthink it,” sums up the investor, who rates PLTR shares a Strong Buy.
Wall Street, by contrast, remains far more cautious. With 13 Hold ratings – alongside 5 Buys and 2 Sells – PLTR carries a consensus Hold (i.e., Neutral) rating. Its 12-month average price target of $155.39 suggests the shares will stay rangebound for the time being. (See PLTR stock forecast)
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Disclaimer: The opinions expressed in this article are solely those of the featured investor. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.