Nvidia's Valuation Holds Up Better Than Palantir's After Earnings

Nvidia and Palantir both crushed their earnings reports, but one stock's valuation holds up better than the other.

Nvidia's revenue soared to $96.22 billion, a 105.85% year-over-year increase, driven by its Data Center business and the ramp of Blackwell Ultra. Jensen Huang said that AI has reached an inflection point, and compute is now generating revenue. Networking grew 138% year over year.

Palantir's revenue also rose to $1.94 billion, a 92.8% increase, with U.S. commercial revenue jumping 149% year-over-year. Alex Karp called it 'otherworldly,' and the company signed 73 deals worth at least $10 million.

Nvidia trades near a P/E of 42, while Palantir sits at a P/E of roughly 146. The article argues that Nvidia's valuation is more reasonable due to its supply-constrained demand, which management says could double, and its ability to convert its commitments into margin expansion.