Nvidia stock expected to rise 50%, analysts believe

Wall Street analysts have differing views on two popular stocks: Palantir Technologies and Nvidia. While Palantir has a "hold" rating, Nvidia is rated as a "buy." Palantir's current share price is $91, with analysts expecting only a 7% increase to a target of $97 per share. Although Palantir's recent earnings showed strong demand for its AI platform, the stock has a high valuation of 220 times adjusted earnings. Analysts note that while Palantir is growing, investors might want to wait for a better price before buying. In contrast, Nvidia’s shares are currently priced at $117, with a target of $175, suggesting a potential 50% rise. Nvidia reported a significant revenue increase of 114% to $130 billion in 2024. It leads the market in data center graphics processing units, holding nearly all of the GPU sales. Analysts highlight Nvidia's advantage in offering comprehensive hardware and software solutions. Nvidia's valuation is lower at 40 times adjusted earnings, giving it a much better price-to-earnings-to-growth ratio of 0.78 compared to Palantir's 5.9. This disparity is a key reason analysts are more optimistic about Nvidia’s future performance.