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NVIDIA and Palantir: Two AI Powerhouses Worth Adding to Your Portfolio

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  Published in Stocks and Investing on Thursday, November 13th 2025 at 8:46 GMT by 24/7 Wall St

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Leading AI Stocks to Buy Now – A Deep‑Dive Summary

In a recent 247wallst.com feature published on 13 November 2025, investors were given a concise yet comprehensive look at two of the most compelling AI‑driven equities on the market today. The article, titled “2 Leading AI Stocks to Buy Now,” argues that the surge in artificial intelligence adoption is not just a passing trend but a structural shift that will continue to benefit a select group of companies. By weaving together earnings data, product road‑maps, macro‑economic trends, and valuation metrics, the piece builds a compelling case for investing in NVIDIA Corp. (NVDA) and Palantir Technologies Inc. (PLTR) – two firms that are positioned at opposite ends of the AI supply chain.

1. NVIDIA – The GPU Powerhouse

a. Why NVIDIA Still Rules the AI Landscape

NVIDIA’s GPUs remain the de‑facto standard for training and inference workloads across industries. Even as competitors such as AMD and the newer AI‑specialised chips from Google and Apple try to catch up, NVIDIA’s dominance is underpinned by: Massive scale in data‑center revenue – In Q3 2025, NVIDIA posted a 32 % YoY increase in data‑center revenue to $3.1 B, a figure that dwarfs its gaming segment. Strong ecosystem – The company’s CUDA programming platform and the growing AI software stack (cuDNN, TensorRT) create a moat that is difficult for new entrants to penetrate. * Strategic partnerships – NVIDIA’s recent collaboration with Amazon Web Services to accelerate “serverless AI” and its partnership with Meta for custom AI chips underline its centrality in the ecosystem.

b. Financial Highlights & Valuation

• Revenue growth – 2025 full‑year revenue is projected at $28 B, up 23 % YoY. Analysts expect this trend to hold as cloud AI consumption climbs.
• Margins – Operating margin is around 45 % – a testament to the high‑margin nature of the GPU and data‑center businesses.
• Valuation – At a forward P/E of 38x, NVIDIA trades at a premium to the S&P 500, but the article argues that the growth story justifies the valuation. The EV/EBITDA multiple sits at 28x, again higher than the sector average but consistent with the company’s high growth trajectory.

c. Risks & Mitigants

• Supply chain bottlenecks – The global chip shortage could strain production. NVIDIA’s diversified supply base and long‑term contracts mitigate this risk.
• Competitive pressure – AMD’s RDNA3 GPUs and Google’s TPU‑C series represent the most serious threats, yet the learning curve and software lock‑in heavily favour NVIDIA.
• Regulatory scrutiny – The U.S. export‑control regime could affect NVIDIA’s ability to sell to certain Chinese customers. The article notes that the company’s revenue from China is only 15 % of total sales, limiting impact.

2. Palantir – The Enterprise AI Software Leader

a. Why Palantir Is the Go‑to AI Partner for Enterprises

Palantir’s flagship platforms—Foundry and Apollo—provide integrated data analytics, AI model deployment, and operational decision‑making for governments and large corporations. The company’s value proposition rests on: Scale and breadth of data integration – Palantir can ingest structured, semi‑structured, and unstructured data from thousands of sources, a critical capability as AI moves from isolated “labs” to enterprise‑wide applications. Domain expertise – Its strong foothold in defense, energy, and healthcare gives Palantir a competitive edge that purely software vendors struggle to match. * Recurring revenue – A high proportion of Palantir’s contracts are multi‑year and have embedded AI services, ensuring stable cash flow.

b. Financial Performance & Growth Outlook

• Revenue growth – The company’s 2025 revenue reached $2.8 B, an 18 % YoY jump. The software‑as‑a‑service (SaaS) revenue share rose to 60 %, indicating a shift away from one‑off consulting deals.
• Profitability – While still operating at a loss (2025 net loss of $350 M), the loss per share has shrunk from $1.60 in 2023 to $0.80, and the EBITDA margin improved from -30 % to -15 %.
• Valuation – At a forward P/E of 75x (or a trailing P/E of 28x, given the net loss), Palantir trades at a premium driven by the growth potential in the AI‑enabled enterprise software space.

c. Risks & Mitigants

• Contract concentration – Approximately 30 % of revenue comes from the U.S. Department of Defense. While lucrative, it poses concentration risk; however, Palantir is actively diversifying into private‑sector clients.
• Data privacy concerns – Government contracts can expose Palantir to political risk and data‑privacy scrutiny. The firm’s robust compliance framework and focus on secure data enclaves mitigate these concerns.
• Execution risk – Scaling new product releases like Palantir Apollo’s AI‑ops platform may hit unforeseen technical challenges. Palantir’s investment in talent and R&D helps counteract this risk.

3. Comparative Outlook & Investment Thesis

Both companies are positioned at the core of AI’s growth engine—NVIDIA provides the hardware that fuels model training, while Palantir delivers the software that turns raw data into actionable intelligence. Their combined exposure to the AI economy means that any long‑term shift toward AI‑centric operating models will benefit them synergistically.

The article stresses that the macroeconomic backdrop is favorable: a projected $5.5 trillion in AI‑enabled enterprise spending by 2027, combined with increasing data volumes, drives demand for both GPU compute and AI‑augmented analytics. Moreover, the “AI dividend” from large incumbents (e.g., Google, Amazon) and governments (e.g., defense, healthcare) ensures a continuous pipeline of new revenue.

4. Practical Take‑aways for Investors

1. Buy on Dips – The article recommends purchasing NVIDIA and Palantir at price troughs, especially after any earnings miss or macro‑economic shock, to capture upside as the AI narrative consolidates.
2. Use Dollar‑Cost Averaging – For investors wary of valuation multiples, dollar‑cost averaging can reduce timing risk.
3. Watch for Regulatory Signals – Keep an eye on export‑control rules that might limit NVIDIA’s Chinese sales or on U.S. data‑privacy regulations that could impact Palantir’s government contracts.
4. Monitor AI Adoption Metrics – The number of “AI‑enabled” customers, the speed of new product rollouts, and the ratio of recurring SaaS revenue are key performance indicators to track.

5. Closing Thoughts

The 247wallst.com article paints a picture of a market in transition. While the AI boom has created a flurry of speculative hype, the companies at the forefront—NVIDIA and Palantir—are rooted in solid business models and are poised to reap the rewards as AI moves from novelty to mainstream utility. For investors looking to tilt their portfolios toward the next generation of technology, these two stocks offer a blend of growth potential, defensive margins (in the case of NVIDIA), and a strong moat that can weather both competitive and regulatory headwinds.

In summary, the piece recommends adding NVDA and PLTR to a diversified equity portfolio, positioning investors to benefit from AI’s accelerating march across industries while being mindful of the valuation premiums and risks inherent in any high‑growth play.