Better Artificial Intelligence Stock: Palantir vs. Nvidia

When it comes to selecting the superior stock in the realm of artificial intelligence (AI), there are various contenders to consider. Among them, two standout organizations are Palantir and Nvidia, each bringing a unique focus in the expanding field of AI.

Palantir, best known for its data analytics software, was responsible for creating the predictive policing platform Gotham, primarily used by enforcement agencies. Gotham harnesses the potential of AI to predict criminal behaviour, providing an important public safety tool. In addition to this, the company also provides Foundry, a software targeted at businesses, which amalgamates disparate sources of data, facilitating superior decision-making.(source1)

On Palantir’s financial standing, the company reported $1.1 billion in revenue for the year ended 31st December 2020, registering a growth rate of about 47% from the previous year. Slightly over half of the company’s revenue comes from government contracts, a primary source of its stable cash flow. However, it’s worth noting that the tech giant is yet to turn a profit due to substantial sales and marketing expenses.(source2)

Nvidia, on the other hand, has established a strong reputation in the construction of graphic processing units (GPUs) for gaming and professional markets. Moreover, it’s also making significant advances in the AI domain. Nvidia’s GPUs are employed in AI tasks like training neural networks, providing the infrastructure that AI innovations depend on. Recently, it announced a new server chip called ‘Grace’, which will directly compete with the likes of Intel and AMD.(source3)

Unlike Palantir, Nvidia’s financial footing appears more robust. Recording an impressive $16.68 billion in sales for its fiscal year ended in January 2021, it saw a growth of 53% compared to the prior year. Furthermore, in contrast to Palantir, Nvidia has generated consistent profits, posting net income of $4.33 billion for its latest fiscal year.(source4)

The two companies show distinct operations within different segments of the AI sphere, thus attracting diverse sets of investors. Palantir’s stable revenue stream largely relies on governmental contracts through platforms like Gotham, whereas Nvidia is recognized for its prominent role in constructing the technological infrastructure underpinning AI development. Both hold significant potential within their respective realms as the world continually shifts towards AI and data-driven decision-making.