As of June 4, 2025, the investment community on Wall Street clearly favors Nvidia (NVDA) over Palantir Technologies (PLTR), indicating differing opinions about their respective growth paths and valuations.

Since April 2025, Nvidia’s stock has increased by 45%, thanks to a decline in trade tensions and strong demand for AI processors. With a market valuation of $3.45 trillion, the business recently overtook Microsoft. Nvidia’s AI infrastructure projects are expected to generate substantial revenue opportunities, according to analysts; UBS estimates that the industry may be worth $1 trillion. Jefferies has included Nvidia in its list of “Franchise Picks” due to its strategic alliances in the Middle East and its leadership in AI accelerators.

Wall Street Sees 30% Upside for Nvidia

The first quarter of fiscal 2026 finished in April, and Nvidia saw positive financial results. At $44 billion, revenue climbed 69%, while non-GAAP net income rose 33% to $0.81 per diluted share. It’s important to note that if not for a write-down associated with export limitations on semiconductors, adjusted profit would have climbed by 57%.

Nvidia has a straightforward investment thesis: the business has over 80% of the market for data center graphic processors (GPUs), which are semiconductors that speed up complicated tasks like artificial intelligence (AI). Analysts at Morgan Stanley believe the company can continue to hold a market share of 80% or more for some time to come.

Nvidia is facing challenges, though, because of export limitations on semiconductors. The Trump administration recently repealed the AI Diffusion Rule, but it also prohibited the unauthorized sale of H20 GPUs to China, barring the company from entering that market. According to management, Nvidia will lose $8 billion in earnings in the second quarter after writing down $4.5 billion in H20 inventory in the first quarter.

However, according to LSEG, Wall Street predicts that Nvidia’s modified earnings will rise 44% in fiscal 2027. The current price of 43 times earnings appears low in comparison to that estimate. I completely concur with Wall Street’s assessment of Nvidia. At the current price, patient investors ought to feel at ease purchasing a position.

Wall Street Projects 23% Downside for Palantir Technologies

Palantir’s Q1 financial results were impressive. The typical existing client spent 124% more, and the number of customers increased 39% to 769. For the seventh consecutive quarter, revenue jumped 39% to $884 million, while non-GAAP earnings climbed 62% to $0.13 per diminished share.

Palantir’s distinctive software design, which not only enables users to extract subtle insights from complicated data but also establishes a chain of feedback that produces insights that get better over time, is the main selling point for investors. Palantir has been acknowledged by the International Data Corp. (IDC) as an international leader in intelligence for choices software.

But even the greatest company isn’t worth purchasing at any cost, and Palantir is valued highly. At the moment, the stock is trading at 285 times modified earnings. Given that Wall Street predicts the company’s revenues will only rise by 26% this year, this looks very costly.

The bottom line is that while I think Palantir is a great company and will be worth a greater amount in the future, I also think that, at the current price, the risk-reward profile is significantly skewed toward risk. Therefore, present shareholders who are accustomed to volatility can hang onto their shares while potential buyers are advised to wait for an enhanced buying opportunity.