AI has become the strongest force driving markets today. Forecasts suggest the global AI industry is on track to reach multi-trillion-dollar scale over the coming years, powered by accelerating enterprise adoption, generative-AI breakthroughs, and massive investment in the infrastructure required to support it. As spending rises and competitive advantage consolidates around key platforms, AI is increasingly viewed not as a niche theme, but as a structural pillar of the modern economy – and investors are positioning accordingly.
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One of those investors is Chris Rokos. The billionaire macro specialist first made his mark at Brevan Howard before launching Rokos Capital in 2015. Today, the firm manages more than $22 billion in assets and employs over 350 people across London, New York, and Singapore. And performance has been strong – during the first 10 months of 2025, the fund delivered returns exceeding 20%, based on HFR data.
Rokos has been active in the AI space, previously holding positions in two of the sector’s heavyweights – Nvidia (NASDAQ:NVDA) and Palantir (NASDAQ:PLTR). But that is no longer the case. During Q3, Rokos fully exited one of those positions while loading up significantly on the other.
So, let’s take a closer look at these two AI stalwarts and see why Rokos is now getting behind only one of these names. For added color, we’ve opened the TipRanks database to get a feel for general Street sentiment here.
Nvidia
Is Nvidia the best AI stock out there? There’s a strong argument that supports such a statement. After all, the AI boom has turned this company from merely a semiconductor heavyweight to the world’s most valuable firm, an accolade that would have seemed quite unlikely a few years ago.
In many ways, Nvidia encapsulates the rise of AI. Its best-in-class chips sit at the heart of the infrastructure powering everything from large-language models to advanced data-center computing, and what sets Nvidia apart is that it isn’t only providing the chips powering the data centers behind this tech. The company also delivers the software frameworks, networking equipment, and full-stack systems that pull the entire infrastructure together.
The company’s dominance in high-performance GPUs has translated into exceptional financial results. In fact, it was a shockingly good quarterly report in May 2023 that kicked off Nvidia’s ascent to the top of the market cap pile, and the Jensen Huang-led company has barely taken its foot off the gas since then. The recent October print featured a by-now customary beat-and-raise display. Revenue hit a record $57 billion, rising 62.5% year-over-year and coming in $1.91 billion above expectations. Adj. EPS reached $1.30, beating estimates by $0.04. And looking ahead to FQ4, the company called for revenue of $65.0 billion, with about a 2% margin of error, compared with the $61.84 billion the analysts were expecting.
Those results must have been music to Rokos’ ears. During Q3, the fund bought 3,512,544 NVDA shares, increasing its stake by over 200%. That purchase is now worth almost $650 million.
Nvidia’s rise has not been without its bumps, however. One headwind has been the restriction on selling high-end AI chips to China. But the Trump administration’s decision on Monday to allow sales to the U.S.’s superpower rival could offer another tailwind, says William Blair analyst Sebastien Naji.
“The sale of H200 chips into China is likely to drive upside to the current fiscal 2027 revenue expectation—Nvidia estimates China represents a $50 billion TAM for GPUs. That said, we are not changing our forward-looking estimates at this time and will look for more evidence that China is putting in orders for these chips before becoming more constructive,” Naji said. “Beyond driving some incremental revenue for Nvidia, more importantly in our view, the adoption of the H200 in China would help strengthen the stickiness of Nvidia’s CUDA software stack. With roughly half of the world’s AI researchers in China, the retrenchment of CUDA would help mitigate the potential for increased competition from China homegrown alternatives… We continue to see a favorable risk/reward equation for the stock as AI demand drives strong momentum and earnings power over the next year.”
Accordingly, Naji rates the shares as Outperform (i.e., Buy) and assigns a fair value estimate of $245 per share, which implies 32% upside potential from current levels. (To watch Naji’s track record, click here)
Wall Street appears to share that level of conviction. TipRanks data shows Nvidia firmly in Strong Buy territory. Of the 41 analysts who issued ratings over the past three months, 39 call the stock a Buy, while just two are sitting on the sidelines. The average price target sits at $258, implying ~39% return potential from current levels. (See NVDA stock forecast)
Palantir
Harking back to the earlier question on whether Nvidia might be the best AI stock to buy, then going by the past few years’ performance, Palantir might have something to say about that. This is a company that has seen robust real-world growth accompanied by huge share price gains. To wit, the stock is up by 2,454% over the last 3 years.
This big data specialist began as a company focused mostly on government work, building software to help intelligence and defense agencies manage and interpret complex data. Its early platforms, especially Gotham, were developed around national security needs, giving the company a reputation for handling sensitive information and large-scale analytical workflows. Over time, Palantir expanded beyond its government roots into the commercial market with Foundry, bringing its data-integration and operational decision-making tools to industries such as healthcare, manufacturing, and financial services.
But the stock really took off following the April 2023 launch of AIP, its Artificial Intelligence Platform. AIP is built to help organizations deploy and control AI systems using their own data, with an emphasis on security, governance, and practical, real-world applications. The platform has become a central part of Palantir’s business, helping the company win new customers and secure bigger deals as organizations seek practical ways to implement AI while keeping control and oversight.
Its launch paved the way for a series of standout quarterly reports that helped drive the stock’s rally. The most recent numbers continued that trend. In Q3, revenue reached $1.18 billion, amounting to a 62.6% YoY increase and $90 million above the prognosticators’ forecast. Adj. EPS hit $0.21, beating expectations by $0.04. As for the guide, the company projected Q4 revenue between $1.327 billion and $1.331 billion, well above the $1.18 billion analysts had anticipated.
Those strong results are all well and good, but the stock’s huge gains have raised concerns about an untenable valuation. Perhaps that explains why Rokos decided to sell its entire PLTR stake in Q3. His fund sold all 159,218 PLTR shares during the quarter.
That bearish move gets the support of Jeffries’ Brent Thill, an analyst ranked among the top 4% on Wall Street, who highlights the frothy valuation.
“PLTR now trades at 83x CY26E revenue. Even under a bullish scenario where the company accelerates to a 60% 4-year CAGR, the stock would need to trade at 27x CY28E revenue just to justify its current price,” the 5-star analyst said. “We believe the risk/reward is unfavorable as the current valuation is susceptible to any downtick in the AI hype cycle.”
To this end, Thill stamps the stock with an Underperform (i.e., Sell) rating, while his $70 price target implies the shares will shed 61% in the months ahead. (To watch Thill’s track record, click here)
1 other analyst joins Thill in the bear camp and with an additional 11 Holds and 3 Buys, the stock claims a Hold (i.e., Neutral) consensus rating. The outlook ahead appears largely range-bound: the average price target sits at $183.07, implying less than 1% upside from current levels. (See PLTR stock forecast)
To find good ideas for AI stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a tool that unites all of TipRanks’ equity insights.
Disclaimer: The opinions expressed in this article are solely those of the featured analysts. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.