Nvidia And Palantir Dominated 2025 Which Is The Best Artificial

Bonisiwe Shabane

-Dec 2, 2025, 9:58 PM

nvidia and palantir dominated 2025 which is the best artificial

Each company looks to be headed into another year of unprecedented growth. Few stocks have been as successful as Palantir (PLTR +4.38%) and Nvidia (NVDA +2.58%) have been during the artificial intelligence (AI) arms race. Since 2023, Nvidia's stock is up 1,100%, and Palantir's is up nearly 2,300% (at the time of this writing). That's an impressive run in just under three years' time, but what they've each done in 2025 is also impressive. Palantir is up around 100% in 2025, while Nvidia is up over 30%. Both of those are market-beating returns, but will they continue that run into 2026?

I think one of these is a much better buy than the other heading into 2026, and one of these impressive stocks could struggle to live up to expectations. Which one is which? Let's take a look. Nvidia and Palantir aren't competitors in the artificial intelligence arms race. In fact, they recently teamed up to offer Palantir's Ontology in a pre-built Nvidia stack. Palantir is a software company that specializes in AI-powered data analytics.

It got its start by offering its software to government agencies, and eventually expanded onto the commercial side. Its platform has evolved over the years, with its latest update involving generative AI-powered agents. Demand for Palantir's products has been insatiable and has led to impressive growth rates. Written by Adria Cimino for The Motley Fool-> Nvidia and Palantir have climbed in the double and triple digits this year as investors pile into artificial intelligence (AI) leaders. This younger player is active in a new and exciting space that’s offering AI customers exactly what they need.

Nvidia (NASDAQ: NVDA) and Palantir Technologies (NASDAQ: PLTR) have been two stocks investors could count on for outsized gains over the past few years -- and that continues as they both head for increases... This is thanks to the companies' strengths in the artificial intelligence (AI) market. Nvidia designs the world's most sought-after AI chip, one that fuels the most essential AI tasks. And Palantir helps customers immediately apply AI to their operations and generate game-changing results. These companies already are benefiting from AI, and so are their customers. NVDA Quick QuoteNVDA PLTR Quick QuotePLTR

The 2025 Q3 earnings cycle continues to chug along, with the vast majority of S&P 500 companies already delivering results. The period has so far been one of resilience, with overall growth remaining strong and an above-average number of companies exceeding quarterly expectations. So far, several companies closely involved in the AI frenzy – Palantir (PLTR Quick QuotePLTR - Free Report) and NVIDIA (NVDA Quick QuoteNVDA - Free Report) – have posted massive growth, with demand remaining... Let’s take a closer look at the releases. NVIDIA posted a double-beat relative to our consensus expectations, with sales of $57 million growing 62% alongside a 67% jump in EPS. Unsurprisingly, it reflected a record-setting release yet again, with both overall and Data Center sales breaking previous records.

And concerning the Data Center, revenue of $51.2 billion grew 66% from the year-ago period, also crushing our consensus estimate of $49.1 billion. As November 2025 draws to a close, the financial markets are keenly observing the performance of several bellwether technology companies, with Nvidia (NASDAQ: NVDA), Tesla (NASDAQ: TSLA), and Palantir (NYSE: PLTR) standing out as... These firms, deeply embedded in the transformative currents of artificial intelligence, electric vehicles, and data analytics, are exhibiting a complex mix of robust growth, ambitious future plans, and significant valuation challenges. Their trajectories are not only shaping their respective sectors but also sending ripple effects across the broader technology and growth investment landscape, prompting investors to weigh unprecedented innovation against heightened market volatility and skepticism. The current environment is characterized by an insatiable demand for AI-driven solutions, ongoing shifts in the automotive industry towards electrification and autonomy, and the increasing reliance on sophisticated data platforms for both government and... However, this period of rapid advancement is also marked by concerns over market bubbles, intense competition, and the sustainability of current growth rates.

The recent performance of Nvidia, Tesla, and Palantir offers a microcosm of these broader market dynamics, showcasing how even the most dominant players are subject to the relentless forces of innovation, investor sentiment, and... Nvidia continues its reign as the undisputed leader in AI hardware, demonstrating exceptional financial growth primarily fueled by the relentless demand for its advanced AI chips. For the third quarter of fiscal year 2026 (ended October 26, 2025), Nvidia reported a staggering record revenue of $57.0 billion, a 22% sequential increase and a robust 62% year-over-year surge, comfortably surpassing analyst... The Data Center segment was the primary growth engine, contributing a record $51.2 billion in revenue, up 25% quarter-over-quarter and 66% year-over-year. Gross margins remained strong at approximately 73.4% to 73.6%, with diluted earnings per share (EPS) at $1.30. The company projects fourth-quarter revenue of around $65.0 billion, signaling continued optimism.

CEO Jensen Huang emphatically stated that "Blackwell sales are off the charts, and cloud GPUs are sold out," highlighting the accelerating demand across both training and inference applications in AI. Key strategic moves include a partnership with OpenAI to deploy Nvidia's systems for OpenAI's next-generation AI infrastructure and the commencement of shipping NVIDIA DGX Spark, touted as the world's smallest AI supercomputer. Despite these stellar results, Nvidia's stock experienced some volatility in late October and early November, partly due to broader market anxieties about a potential "AI bubble." Huang publicly refuted these fears, asserting that the... Hedge funds were net buyers of Nvidia shares in Q3, and many analysts maintain positive outlooks, suggesting the stock may be undervalued given its growth trajectory. Tesla, the electric vehicle pioneer, presented a mixed financial picture for Q3 2025, reporting a record $28.095 billion in revenue, a 12% year-over-year increase that surpassed analyst estimates. However, non-GAAP earnings per share of $0.50 missed consensus expectations.

GAAP net income stood at $1.37 billion. Despite achieving record vehicle deliveries globally and generating a robust free cash flow of nearly $4.0 billion, ending the quarter with $41.6 billion in cash, Tesla's operating income decreased by 40% year-over-year to $1.6... Its operating margin compressed significantly to 5.8% from 10.8% a year prior, primarily due to aggressive pricing strategies and a reduction in regulatory credit sales. The energy generation and storage segment, however, showed strong growth, with revenue up 44% year-over-year to $3.4 billion and record gross profit. The artificial intelligence revolution is quickly reshaping industries, economies and investment strategies. Palantir Technologies (PLTR) and Nvidia Corporation (NVDA) consistently capture investor attention in this space.

While both are recognized as major players in the AI ecosystem, they represent fundamentally different approaches to capitalizing on the technology's exponential growth. This article examines these AI powerhouses through multiple lenses: their core business models, technical capabilities, financial performance and prospects. We'll analyze their strengths, weaknesses, and positioning within the evolving AI landscape to determine which might represent the superior investment opportunity for different types of investors in today's market. Artificial intelligence has evolved from a theoretical concept to an increasingly mainstream commercial reality. As of early 2025, we're witnessing the rapid proliferation of generative AI applications across industries following the breakthrough success of large language models. Organizations worldwide are racing to implement AI solutions to enhance productivity, reduce costs, and create innovative products and services.

IDC projects global AI spending to surpass $300 billion in 2025, with a compound annual growth rate exceeding 25% through 2028. The AI infrastructure market has become particularly critical, with demand for specialized hardware, chip, and software platforms creating supply constraints and enormous business opportunities. Recent developments, such as the Chinese research lab DeepSeek demonstrating the ability to train competitive AI models at a fraction of traditional computing power requirements, challenge conventional assumptions about AI infrastructure needs. Despite such disruptions, major tech companies, including Meta Platforms, Alphabet, and Amazon have doubled down on AI investments, with Meta planning to spend up to $65 billion on AI infrastructure in 2025, Alphabet projecting... Before weighing these companies as investment opportunities, it's essential to understand their distinct business models, revenue streams and approaches to AI. While both operate in the broader AI ecosystem, they occupy very different positions.

Palantir focuses on AI-powered data analytics software, while Nvidia provides the fundamental hardware infrastructure that powers much of today's AI revolution. These two companies represent different sides of the AI investment trend. The artificial intelligence (AI) megatrend has dominated the stock market over the past three years, and with massive AI spending projections stretching out through 2030 and beyond, that doesn't look likely to change anytime... Two of the most successful stock picks in that part of the tech sector in recent years have been Palantir (PLTR +4.38%) and Nvidia (NVDA +2.58%). They aren't competitors, as they operate on different sides of the AI value chain. Nvidia is a largely hardware provider, while Palantir makes software.

Both have made their long-term investors a ton of money, but the question is, which one provides the better investment opportunity from here? Let's break that question down and consider it by category. Nvidia makes the world's leading graphics processing units (GPUs), and its wares are by far the most popular parallel-processor chips for powering and training AI models. Nvidia has enjoyed solid market dominance over the past few years, but rising competition from AMD (AMD +2.16%) and Broadcom (AVGO +1.36%) could challenge that. Additionally, the AI infrastructure buildout won't last forever. There will eventually be a time when companies aren't racing to add high volumes of computing capacity, but instead mostly replacing processors as they reach the end of their useful lifespans.

Palantir sells its customers artificial intelligence-powered data analytics platforms, and it has a large client base in both the commercial and government spaces. Palantir's software enables those with decision-making authority to act quickly and with the most up-to-date information possible. Furthermore, it also offers automation tools that can task AI agents with jobs that humans have traditionally done, freeing up employees to do work that requires original thinking.

Nvidia And Palantir Dominated 2025 Which Is The Best Artificial

People Also Search

Each Company Looks To Be Headed Into Another Year Of

I Think One Of These Is A Much Better Buy

It Got Its Start By Offering Its Software To Government

Nvidia (NASDAQ: NVDA) And Palantir Technologies (NASDAQ: PLTR) Have Been

The 2025 Q3 Earnings Cycle Continues To Chug Along, With