Technology: In 2024, tech enthusiasts witnessed an exciting stock market race between Palantir and Nvidia. Both companies posted spectacular growth, but Palantir emerged as the biggest company of the year with a whopping 325% growth, outpacing Nvidia’s impressive 180%. As 2025 draws closer, investors and experts are eager to determine which of these giants will dominate in the coming year.
Nvidia’s success in the AI infrastructure sector lies in its wide “moat” – a term often used to describe a company’s competitive advantage. The key to this is its CUDA software platform, which has transformed Nvidia’s GPUs from mere graphics accelerators to those required for complex computing tasks. This innovation has solidified the dominance of Nvidia, which holds nearly 90% of the GPU market share.
Palantir, however, plays a different game. Although its AI strategies are still maturing, its AI platform (AIP) is gaining popularity in commercial and government sectors alike. Palantir believes that the real value in AI lies not in the models but in the applications and workflows they enable, which points to a promising future.
Both companies are experiencing strong growth through different paths. Nvidia’s revenue has grown rapidly, driven by strong chip demand, with forecasts predicting continued momentum. Meanwhile, Palantir’s revenue, driven heavily by US partnerships, is growing, albeit at a slower pace.
When evaluating their financial outlook, Nvidia’s valuation stands out the most. With a forward P/E ratio indicating potential undervaluation, it appears attractive. In contrast, Palantir’s elevated P/S ratio surprises people given its current growth projections.
As 2025 approaches, the competition between these tech giants is set to captivate investors. Whether it’s Nvidia’s established empire or Palantir’s disruptive ambitions, only time will reveal the true winner.
