Shares of Nvidia (NASDAQ:NVDA) and Palantir Technologies (NYSE:PLTR) delivered enormous returns year-to-date (see the image below). The rapid adoption and deployment of AI (Artificial Intelligence) significantly boosted these stocks. As NVDA and PLTR are poised to benefit from AI-led demand, it prompts the question: which of these two stocks has more upside potential? According to the average price targets set by analysts, Nvidia offers a higher upside from its current levels.
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Let’s dig deeper.
Analysts See Higher Upside Potential for NVDA Stock
Analysts’ average price target of $661 indicates NVDA stock could rise by 38.22% over 12 months. In contrast, Wall Street analysts’ average PLTR stock price target of $14.67 suggests a 25.57% downside potential from current levels.
The surge in AI-driven demand presents a lucrative growth opportunity for both companies over the next several years. However, Nvidia stands out as a key player, with its technology widely recognized as a primary driver of AI. Leveraging its leadership position and accelerated product development, Nvidia is anticipated to achieve remarkable revenue growth in the upcoming quarters, which could lift its share price. The company anticipates its top line to triple in Q4, with momentum expected to continue into 2024, thanks to the broad-based demand for its Graphics Processing Units (GPUs).
Similarly, Palantir is also benefiting from robust demand fueled by AI. In the third quarter alone, the company closed 80 deals worth $1 million or more. Additionally, it closed 29 deals valued at $5 million and 12 deals valued at $10 million or more. Apart from experiencing an uptick in larger deals, Palantir is enjoying quicker conversion times. This growth is attributed in part to the strength of Palantir’s AI platform.
Is Nvidia a Buy or Sell?
Wall Street is bullish about NVDA’s prospects. With 30 Buys and three Holds, NVDA stock reflects a Strong Buy consensus rating.
What is Palantir Stock Prediction?
Wall Street analysts remain sidelined on Palantir stock. The stock has received four Buy, five Hold, and six Sell recommendations for a Hold consensus rating.
Bottom Line
Both Nvidia and Palantir are poised to benefit from the robust demand fueled by AI. However, analysts are more bullish about Nvidia stock. Further, their average price target suggests that Nvidia stock has more upside potential than PLTR.
