The article by Sanghamitra Saha compares Palantir Technologies (PLTR) and NVIDIA (NVDA) as potential investments in the AI sector for 2025. Palantir has seen remarkable growth, with its stock up 386.7% year-to-date, driven by its successful AI platform and strong government sector exposure. The company’s focus on scaling its customer base and revenue, alongside consortium-building efforts with industry leaders, underscores its potential. However, Palantir's high valuation and limited financial metrics, such as a lower growth rate and return on equity compared to NVIDIA, pose concerns.

NVIDIA, on the other hand, benefits from its dominance in the GPU market and the launch of its Blackwell chips, which promise groundbreaking AI performance. With a strong valuation, high profit margins, and dividend payouts, NVIDIA presents a more balanced growth and value proposition. NVIDIA-focused ETFs like VanEck Semiconductor ETF (SMH) are highlighted as attractive plays for AI investors, while Palantir-heavy ETFs may appeal to those seeking momentum in high-growth stocks. The comparison suggests NVIDIA’s established market leadership makes it a stronger candidate for 2025 investments.

*Source: Zacks, December 26, 2024.*