Palantir's Stock Decline: Nvidia and AMD Emerge as New Favorites
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 day ago
0mins
Should l Buy NVDA?
Source: Fool
- Palantir's High Valuation: Despite a significant stock pullback this year, Palantir's valuation remains astronomical at 128 times forward earnings, which may lead to declining investor confidence in its future growth prospects.
- Optimistic Outlook for Nvidia: Nvidia's forward earnings multiple stands at 24.5, and with the upcoming launch of the Rubin platform, which will support inference at up to 10 times lower costs, the company is expected to continue its growth trajectory and solidify its leadership in the AI chip market.
- AMD's Competitive Edge: Although AMD trades at nearly 32 times forward earnings, its Instinct MI400 chips match Nvidia's Vera Rubin in compute performance and memory bandwidth while offering 1.5 times the memory capacity and scale-out bandwidth, showcasing its potential as a credible challenger to Nvidia.
- Sustained Market Demand: Both Nvidia and AMD are poised to benefit from ongoing GPU demand, while Palantir's excellent product may not justify its high stock price, potentially hindering its ability to deliver market-beating returns.
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Analyst Views on NVDA
Wall Street analysts forecast NVDA stock price to rise
41 Analyst Rating
39 Buy
1 Hold
1 Sell
Strong Buy
Current: 182.810
Low
200.00
Averages
264.97
High
352.00
Current: 182.810
Low
200.00
Averages
264.97
High
352.00
About NVDA
NVIDIA Corporation is a full-stack computing infrastructure company. The Company is engaged in accelerated computing to help solve the challenging computational problems. The Company’s segments include Compute & Networking and Graphics. The Compute & Networking segment includes its Data Center accelerated computing platforms and artificial intelligence (AI) solutions and software; networking; automotive platforms and autonomous and electric vehicle solutions; Jetson for robotics and other embedded platforms, and DGX Cloud computing services. The Graphics segment includes GeForce GPUs for gaming and PCs, the GeForce NOW game streaming service and related infrastructure, and solutions for gaming platforms; Quadro/NVIDIA RTX GPUs for enterprise workstation graphics; virtual GPU software for cloud-based visual and virtual computing; automotive platforms for infotainment systems, and Omniverse Enterprise software for building and operating industrial AI and digital twin applications.
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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