Palantir and Nvidia Show Strong AI Growth Momentum
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 26 2026
0mins
Should l Buy PLTR?
Source: NASDAQ.COM
- Palantir's Successful Pivot: Since the launch of its Artificial Intelligence Platform (AIP) in April 2023, Palantir's stock has skyrocketed 1,490%, reflecting strong enterprise demand for AI and solidifying its leadership in data-driven decision-making.
- Nvidia's Impressive Earnings: Nvidia reported record revenue of $68.1 billion for Q2 FY2026, a 73% year-over-year increase that exceeded analyst expectations, indicating sustained demand for AI infrastructure and further boosting Palantir's market performance.
- Significant Commercial Growth: Palantir's U.S. commercial segment revenue surged 137% year-over-year to $507 million, with a 64% increase in customer numbers, highlighting robust demand for AIP and laying a solid foundation for future growth.
- Future Growth Potential: Palantir's total remaining performance obligation (RPO) soared 143% to $4.21 billion, and CEO Alex Karp's ambitious plan to 10X revenue over the next decade demonstrates the company's confidence in long-term growth prospects.
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Analyst Views on PLTR
Wall Street analysts forecast PLTR stock price to rise
17 Analyst Rating
5 Buy
10 Hold
2 Sell
Hold
Current: 143.100
Low
50.00
Averages
192.88
High
255.00
Current: 143.100
Low
50.00
Averages
192.88
High
255.00
About PLTR
Palantir Technologies Inc. is engaged in building software to assist in counterterrorism investigations and operations. The Company has built four principal software platforms, including Palantir Gotham (Gotham), Palantir Foundry (Foundry), Palantir Apollo (Apollo), and Palantir Artificial Intelligence Platform (AIP). Apollo is a cloud-agnostic, single control layer that coordinates ongoing delivery of new features, security updates, and platform configurations, helping to ensure the continuous operation of critical systems. Gotham enables users to identify patterns hidden deep within datasets, ranging from signals intelligence sources to reports from confidential informants. Foundry transforms the ways organizations operate by creating a central operating system for their data. AIP enables responsible artificial intelligence (AI)-advantage across the enterprise by using primary, core components built to effectively activate large language models and other AI within any organization.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Record Contract Value: In Q4, Palantir secured 180 deals worth at least $1 million and 61 deals worth at least $10 million, culminating in a record total contract value of $4.3 billion, reflecting increasing market recognition of its platform.
- Valuation Risks: With a P/E ratio of 226, Palantir's high valuation signifies market expectations for future growth, yet it also exposes the stock to greater volatility in the short term, particularly if earnings do not meet expectations.
- Increasing Competitive Pressure: While Palantir holds a first-mover advantage in data analytics, emerging companies like Snowflake and C3.ai pose significant threats to its market share, necessitating continuous innovation to maintain competitiveness.
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- Competitive Advantage Analysis: Burry conducted a
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See More
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- Revenue Growth Expectations: Wall Street anticipates Palantir's Q1 2026 revenue will increase by 74% year-over-year, although this acceleration rate is lower than before, indicating strong growth potential in the U.S. commercial sector.
- Record Contract Value: In Q4, Palantir secured 180 deals worth at least $1 million and 61 deals worth at least $10 million, culminating in a record total contract value of $4.3 billion, reflecting increasing market recognition of its platform.
- Valuation Risks: With a P/E ratio of 226, Palantir's high valuation signifies market expectations for future growth, yet it also exposes the stock to greater volatility in the short term, particularly if earnings do not meet expectations.
- Increasing Competitive Pressure: While Palantir holds a first-mover advantage in data analytics, emerging companies like Snowflake and C3.ai pose significant threats to its market share, necessitating continuous innovation to maintain competitiveness.
See More
Surging Demand for AI Chips Signals Positive Market Outlook
- Rising AI Chip Demand: Companies like TSMC, ASML, and Intel reported soaring demand for AI chips in their earnings, driving revenue growth and reflecting sustained market confidence in AI technology.
- Investor Sentiment Recovery: Despite volatility in AI stocks last year and early this year, improving geopolitical conditions are rekindling investor interest, with expectations for continued growth during the earnings season.
- Valuation Risks: While companies like NVIDIA and Palantir reached forward earnings multiples of 50x and 285x respectively, concerns about an AI bubble persist, prompting investors to seek safer bets in uncertain market conditions.
- Cloud Services Growth Potential: Amazon noted in its shareholder letter that as companies expand their AI usage, demand for cloud services is also rising, indicating that the broad application of AI technology will create new growth opportunities for related businesses.
See More
AI Stocks Recover, Optimistic Market Outlook
- Sustained Demand: Companies like Taiwan Semiconductor, ASML, and Intel reporting strong demand for AI chips have reignited market interest in AI, which is expected to drive revenue growth and solidify their positions in the tech sector.
- Investor Confidence Rebounds: With the geopolitical situation in Iran improving and negotiations progressing between the U.S. and Iran, investor confidence in AI stocks is gradually returning, leading to a potential influx of capital back into this sector and possible stock price increases.
- Positive Signals from Earnings Season: Companies like Amazon and TSMC have highlighted robust AI demand in their latest earnings reports, with Amazon's chip business performing exceptionally well, providing strong support for future growth of AI-related companies and indicating that the earnings season will bring more positive news.
- Changing Market Environment: Although previous high valuations of AI stocks raised investor concerns, the increasing recognition of AI technology applications is expected to lead to continued stock price increases during and after the earnings season, creating new investment opportunities.
See More
Michael Burry's Surprising Long Position in Microsoft AI Stock
- Investor Attention: Michael Burry's keen understanding of financial markets has drawn significant investor interest, especially after his short position against the U.S. housing market in the early 2000s generated over $700 million for hedge fund investors, showcasing his exceptional investment acumen.
- AI Market Views: Despite previously expressing concerns about AI stock valuations and shorting Nvidia and Palantir last year, Burry's recent long position in Microsoft indicates his optimism about the company's long-term growth potential in the AI sector.
- Microsoft's Market Position: Microsoft's leadership in software and cloud computing, along with its proven ability to generate earnings growth, positions it as a key player for long-term success, particularly with Azure's revenue soaring 39% year-over-year.
- Investment Opportunity: While AI technology may pose risks to certain software, Burry believes Microsoft's competitive strengths will support its long-term growth, suggesting that investors might consider following Burry's lead into this top AI stock.
See More
Michael Burry's Perspective on Microsoft
- AI Bubble Concerns: Michael Burry expressed concerns about the AI market bubble late last year and previously shorted popular AI stocks like Nvidia and Palantir, showcasing his keen market valuation insights; however, he recently took a long position in Microsoft, indicating optimism about the company's long-term growth potential.
- Microsoft's Market Position: As a leader in cloud computing and software, Microsoft reported a 39% revenue increase in Azure and other cloud services last quarter, which not only demonstrates its strong profitability but also lays a solid foundation for future growth amid rising AI demand.
- Competitive Advantage Analysis: Burry conducted a
See More
AI Supercycle Continues to Heat Up
- Physical AI Market Potential: Nvidia's revenue from physical AI exceeded $6 billion, with the market projected to reach $3.25 trillion by 2040, presenting a massive opportunity for future revenue growth that could add hundreds of billions to its top line.
- Robotaxi Collaborations: Nvidia is collaborating with Alphabet's Waymo, Uber, and Tesla to develop robotaxi solutions, which not only enhances its competitive edge in autonomous driving but also opens new revenue streams, further solidifying its market leadership.
- Growth in Agentic AI: Palantir Technologies signed contracts worth $4.3 billion in the agentic AI market, a 138% increase year-over-year, indicating significant market share gains in a rapidly growing sector expected to expand at a 46% annual growth rate through 2030.
- Customer Base Expansion: Palantir's accelerating customer growth and enhanced business extraction from existing clients have led to a significant revenue backlog, laying a solid foundation for future revenue growth and promising substantial returns for investors.
See More
