Nvidia (NASDAQ: NVDA) and Palantir (NASDAQ: PLTR) have been two of the faces of the artificial intelligence (AI) investment trend since it began in 2023. Each has delivered incredible shareholder returns, rising more than 2,600% (Palantir) and nearly 1,100% (Nvidia) since 2023. Each company has also had a phenomenal 2025, with Palantir and Nvidia rising 134% and 27%, respectively.
After those great runs, it wouldn’t be a surprise if both of these stocks take a break. However, I think one of them is poised to deliver phenomenal returns in 2026, while the other is set to fall.
Palantir and Nvidia aren’t competitors, as they are in completely different parts of the AI world. In fact, they recently teamed up to offer prebuilt models on Nvidia’s hardware technologies. Nvidia’s contributions to the AI buildout have been its cutting-edge graphics processing units (GPUs). These devices have been the preferred computing unit for nearly every AI hyperscaler due to their incredible power and flexibility. Although other companies are starting to catch up to Nvidia, it’s still the leader in AI computing hardware.
Palantir is a software play. Its AI-powered data analytics software platform has delivered valuable insights to clients. Its biggest advancement in the past few years is its AIP platform, which allows clients to make use of generative AI. By deploying AI agents, a company can automate tasks to improve efficiency. This popular product has found adoption by both government and commercial clients.
Palantir’s year-over-year commercial growth for the third quarter was 73%, while the growth of its government division was 55%. Although it grew more slowly, the government division generated $633 million in revenue while the commercial division came in at $548 million. Combined, they delivered 63% growth. That’s an impressive quarter for Palantir, but there’s a monstrous size difference between it and Nvidia.
Nvidia’s Q3 for its fiscal year 2026 (ended Oct. 26) saw similar growth. Its revenue rose 62% year over year, but Nvidia’s revenue stream is more than 50 times larger at $57 billion. There’s a clear massive demand for AI computing power, and Nvidia is thriving on that. In fact, the company believes that global data center capital expenditures will rise to between $3 trillion and $4 trillion by 2030, up from $600 billion in 2025. The AI buildout is far from over, and both Nvidia and Palantir are slated to deliver further growth.
