NVDA vs. PLTR: Which AI Stock Is the Smarter Buy Now after Crushing Earnings?

Two of Wall Street’s hottest AI stocks, Nvidia NVDA -5.46% ▼ and Palantir Technologies PLTR +1.30% ▲ , reported earnings this month — and both beat expectations. But which one is the better buy right now? Using TipRanks’ Stock Comparison Tool, we have compared NVDA and PLTR to see which stock offers higher upside to investors. Nvidia stock currently has a Strong Buy rating, with an average price target of $273.38 — implying about 48% upside from current levels. In comparison, PLTR has a Moderate Buy consensus, with a price target of $188.82, suggesting an upside of 39%.

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On pure growth, it’s basically a tie. Both companies delivered around 70% annual revenue growth in their latest earnings reports, and both are profitable. But the story changes at valuation.

Nvidia trades at roughly 23 times forward earnings. That is an attractive price for a company growing this fast. Palantir, on the other hand, trades at more than 100 times forward earnings — over four times more expensive than Nvidia on that same measure. Palantir’s forward guidance of 61% annual growth for 2026 is impressive, but investors are already paying a massive premium to own it.

In terms of stock performance, NVDA stock is down about 0.86% year-to-date, while PLTR has fallen more than 20% over the same period.

Let’s look at these stocks in detail.

Nvidia (NASDAQ:NVDA)

Nvidia delivered a blockbuster quarter, with revenue surging 73% year-over-year to $68.1 billion. The company beat expectations and guided higher for next quarter. Yet NVDA stock fell more than 5% after the report, weighed down by sky-high expectations and concerns over rising AI spending.

Despite a solid report, two details raised fresh questions about whether the AI boom is starting to cool. First, data center growth is slowing. Revenue in the segment rose 22% quarter over quarter in fiscal Q4, down from 25% in Q3. Second, share buybacks have fallen sharply. Nvidia repurchased less than $4 billion of stock in Q4, compared with $7.8 billion a year ago.

Analysts Stay Bullish on NVDA

Following the numbers, Wall Street can’t stop gushing over NVDA stock. Notably, five-star analyst Gil Luria of D.A. Davidson called the quarter a “notable beat” and said he sees “no reason to doubt compute demand,” given the accelerating pace of AI progress. He maintains a Buy rating on NVDA with a $250 price target.

Similarly, top-rated analyst Tristan Gerra of Robert W. Baird raised his price target on Nvidia from $275 to $300, reiterating a Buy rating. Gerra said Nvidia offers one of the most predictable revenue paths this year and expects its new products to further widen its performance lead over competitors. He expects 80% year-over-year growth in data center revenue, with potential upside.

Palantir Technologies (NASDAQ:PLTR)

Palantir also delivered strong results, with revenue rising 70% to $1.41 billion, driven by Trump administration support and U.S. business growth. Notably, U.S. commercial revenue jumped 137%, beating estimates, while government revenue climbed 66%. The company guided for a full-year revenue outlook of about $7.2 billion, which topped the $6.3 billion forecast.

Despite strong results, PLTR stock has fallen more than 17% over the past month, pressured by valuation concerns and a broader market pullback. The stock had already run far ahead of its fundamentals, so even an earnings beat wasn’t enough to drive it higher.

Wall Street Turns Bullish on PLTR after Earnings

Following the results, William Blair’s top-rated analyst Louis DiPalma upgraded PLTR from Hold to Buy, saying the recent pullback has made the stock’s valuation more reasonable. DiPalma noted that Palantir stood out in Q4 and believes the stock could eventually move past $200 per share. He said the company’s ability to capitalize on political and AI trends supports a longer-term view. He added that while valuation concerns had kept him cautious before, improving free cash flow and strong 2027 projections now make PLTR a Buy in his view.

Beyond him, analysts at UBS, Mizuho, Philip Securities, and Daiwa have also upgraded PLTR from Hold to Buy over the past month.

Conclusion

Nvidia looks like the cleaner buy right now. Its valuation is more reasonable, its revenue base is much larger, and it sits at the center of AI infrastructure spending. The recent dip after strong earnings could also be a buying opportunity for long-term investors.

Palantir, on the other hand, is a higher-risk, higher-reward play. Its software model brings in sticky, recurring revenue, and demand from U.S. commercial and government customers is growing fast. But the stock is expensive, and any slowdown in growth could lead to sharp downside.

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