Why Nvidia Is Hands-Down a Better Stock to Buy Than Palantir for 2026

• Nvidia and Palantir person akin maturation stories.

• Nvidia's valuation is overmuch much charismatic than Palantir's.

• Overall, Nvidia appears to connection a amended risk-reward proposition than Palantir.

• 10 stocks we similar amended than Nvidia ›

Nvidia (NASDAQ: NVDA) is connected way to present different sizzling show successful 2025. The chipmaker's gain, though, won't travel anyplace adjacent to matching that of Palantir Technologies (NASDAQ: PLTR). Unless Palantir's banal implodes successful the last trading days of the year, it should decorativeness 2025 up much than 150%.

Does Palantir's momentum marque it the much charismatic prime going into the caller year? I don't deliberation so. Instead, I judge that Nvidia is the hands-down amended banal to bargain than Palantir for 2026.

Don't get maine wrong: Palantir has an awesome maturation story. In the 3rd 4th of 2025, the bundle institution reported that its full gross accrued 63% year-over-year and 18% quarter-over-quarter to $1.18 billion.

As it has successful the past, Palantir continues to make the bulk of its gross successful the U.S. Over fractional of its U.S. gross stems from contracts with the national government. However, that mightiness not beryllium the lawsuit for overmuch longer. The company's U.S. commercialized gross is increasing astatine a overmuch faster gait than its authorities revenue.

Nvidia's maturation is remarkably akin to that of Palantir. The GPU shaper reported Q3 gross of $57 billion, up 62% year-over-year and 22% quarter-over-quarter.

Which institution has the stronger momentum arsenic 2025 draws to a close? I'd springiness the motion to Nvidia, based connected the gross guidance from some companies. While Palantir forecasts quarter-over-quarter gross maturation of 12.5% successful Q4, Nvidia projects quarter-over-quarter gross maturation of 14%.

Both artificial quality (AI) leaders besides person CEOs who hype their maturation stories. Jensen Huang, laminitis and CEO of Nvidia, said successful his company's Q3 update, "Blackwell income are disconnected the charts, and unreality GPUs are sold out." That seemed downright modest, though, compared to Palantir laminitis and CEO Alex Karp's proclamation that his institution delivered an "unworldly maturation rate" successful the 3rd quarter.

I don't deliberation that Nvidia's comparatively tiny momentum vantage arsenic 2025 draws to a adjacent makes it a hands-down amended banal to bargain than Palantir successful the caller year. However, I judge that Nvidia's valuation does.

Granted, Nvidia doesn't look to beryllium inexpensive astatine archetypal glance. The stock's guardant price-to-earnings ratio is astir 24.8. It's indispensable to origin successful the company's maturation prospects implicit the adjacent fewer years, though. Nvidia's price-to-earnings-to-growth (PEG) ratio, based connected analysts' five-year maturation projections, is lone 0.72, according to Yahoo! Finance. Any PEG aggregate beneath 1.0 is typically considered an charismatic valuation.