Why Palantir Earnings Win Is Great News for Nvidia Investors
Nvidia stock is still rising, and Palantir's excellent earnings report could help boost it further.
Quick overview
- Palantir reported a 48% revenue growth year-over-year, indicating strong performance in the AI sector.
- The company's AI platform contributed to a 14% quarterly revenue increase, surpassing analyst expectations.
- Nvidia's stock rose by 1.35%, reflecting its dominance in the GPU market and anticipated positive earnings reports.
- The AI market is projected to grow significantly, with estimates suggesting it could reach over $3 trillion in the next decade.
Palantir (PLTR) just delivered its second quarterly earnings report that showed 48% revenue growth from the previous year, and that is very promising for Nvidia’s (NVDA) stock.
Palantir’s AIP (Artificial Intelligence Platform) is doing incredibly well as evidenced by a 14% quarterly increase in the company’s revenue. The quarterly report was just released and showed that the company’s adjusted earnings per share were $0.16. These numbers beat the analyst predictions and showed that AI is very much still a growing technology niche.
That bodes well for Nvidia and their future earnings since Palantir likely uses Nvidia GPUs in their platform. Nvidia owns so much of the artificial intelligence market for processing GPUs that the Chinese government has accused them of holding a monopoly. So, as Palantir does well, Nvidia is likely to benefit.
How Palantir and Nvidia Stocks Are Performing
Nvidia continues to dominate the tech stock niche, and their lengthy rally has not abated. In early morning trading for Thursday, the NVDA stock added 1.35% to its already impressive stock value. Now priced at $181.77, this stock is far above its 2025 starting price of $144.
Nvidia is enjoying the benefits of an open Chinese market since the Trump administration has stopped banning the sale of the company’s highly advanced H20 chips to that particular region. The company expects to post a favorable report for its quarterly earnings statement later this month. Goldman Sachs has already increased their stock price prediction for Nvidia for that upcoming quarterly report.
Palantir beat expectations for revenue year over year and from quarter to quarter, and their AI platform is doing very well and remains in high demand. That is evidenced by their quarterly earnings, which exceeded $1 billion for the quarter for the first time.
Artificial intelligence as a business is booming, with an estimated $758 billion in value for 2025. It is expected that this market will climb to more than $3 trillion in the next 10 years, and even if the estimates are over-valuing the market potential, Nvidia is still poised to bring in incredible earnings over the next few years.
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