Nvidia CEO Jensen Huang Delivers Major Boost for Palantir Stockholders

Palantir Technologies has made significant strides in the artificial intelligence (AI) landscape, especially following Nvidia’s recent performance. With the AI revolution presenting opportunities, Palantir serves as a vital player in this sector.

Nvidia’s Strong Financial Results and Implications for Palantir

Nvidia has solidified its position in AI technology, as seen in its financial results for the third quarter of fiscal 2026, ending October 26. The company reported an impressive revenue of $57 billion, marking a 62% increase year over year and a 22% rise from the previous quarter. Adjusted earnings per share (EPS) also surged, reaching $1.30, up 60% from the prior year.

The company’s gross margin stood at 73.4%, surpassing analysts’ expectations. Nvidia’s data center segment, which includes processors for cloud computing and AI, achieved record revenue of $51.2 billion. This figure reflects a 66% year-over-year and 25% sequential growth. CEO Jensen Huang attributed this success to high demand for their AI-focused Blackwell chips and a shortage of graphics processing units (GPUs) available to cloud operators.

Forward-Looking Statements from Nvidia

• Nvidia forecasts revenue of $65 billion for the upcoming quarter.
• This projection represents a 65% increase year-over-year.
• Management expects gross margin to grow to 74.8% at the midpoint of their guidance.

Palantir’s Growth Amidst AI Advancements

With AI driving new infrastructure investments, Palantir finds itself well-positioned for growth. The company’s Artificial Intelligence Platform (AIP) enables businesses and governments to enhance data-driven decision-making. This robust software has become essential in integrating siloed data for real-time analysis.

In the third quarter, Palantir achieved revenue of $1.18 billion, reflecting a growth of 63% year-over-year and an 18% increase from the previous quarter. Their adjusted EPS rose to $0.21, up 110%, and the company’s total contract value skyrocketed to $2.8 billion, a 151% increase.

Commercial Segment Performance

Palantir’s performance in its U.S. commercial segment is particularly noteworthy. Revenue soared by 121% year over year to $397 million, driven by a 65% increase in customer count. The total contract value for this segment reached $1.3 billion, indicating a 342% growth.

Long-Term Outlook and Investment Strategy

Despite impressive numbers, Palantir’s stock trades at 159 times next year’s expected earnings, indicating a high valuation. CEO Alex Karp has ambitious plans to increase revenue significantly in the upcoming years, suggesting a potential for long-term growth in stock value.

For investors considering Palantir, a cautious approach may be prudent, such as starting with a small position during market fluctuations and employing dollar-cost averaging to build a stake over time. While the investment carries risks, the potential rewards could be substantial in the coming decade as AI technologies continue to evolve.