Artificial intelligence (AI) technology is rapidly transforming the economy and the way we allocate capital.
Two standout names in the sector, Nvidia (NASDAQ: NVDA) and Palantir (NASDAQ: PLTR) continue to draw intense market interest, each offering different value propositions.
Nvidia’s financial performance has been exceptional, with the company breaking the $4 trillion market cap barrier on July 10, while Palantir has been expanding its relationship with the U.S. Government.
To determine which of the two stocks holds greater potential in 2025, Finbold turned to OpenAI’s ChatGPT for its perspective.
NVDA analysis
At press time, NVDA stock was trading at $164.10, down 0.83% in pre-market.
ChatGPT first noted Nvidia’s role as the backbone of the AI industry, given that its graphics processing units (GPUs) are essential for training and deploying language learning models (LLMs).
The launch of Nvidia’s Blackwell platform reinforced its leading position, resulting in increased demand from cloud and enterprise AI developers.
As AI adoption is only expected to grow, the demand for compute capacity is expected to surge further as well.
Indeed, Nvidia’s revenues and margins have been rising accordingly, and analysts continue to be bullish, with Goldman Sachs’ James Schneider recently highlighting the company’s consistent product innovation, expanding customer base, AI monetization, and compelling valuation as primary reasons for optimism.
Accordingly, ChatGPT concluded that Nvidia is the better option for those seeking stability, scale, and direct exposure to AI infrastructure. As for the target price, the AI suggested a range between $160 and $240 for H2 2025.
PLTR analysis
Meanwhile, PLTR stock was trading at $142.50 at the time of writing, down 1.23% in pre-market.
As ChatGPT noted, Palantir’s approach is different from Nvidia’s, as the company focuses on AI-driven software rather than hardware.
For instance, its Gotham and Foundry platforms have use in government and commercial sectors, while its Artificial Intelligence Platform (AIP) serves companies seeking to operationalize AI.
H2 2025 is expected to be pivotal for Palantir, with renewed contracts with the U.S. Government (which are still responsible for most of Palantir’s revenue).
Of course, the company’s commercial business is also lucrative, as witnessed by a 33% jump in overall commercial revenue from a year ago.
All in all, ChatGPT’s key takeaway was that Palantir is scaling quickly, meaning that its profitability metrics remain “a work in progress.” In other words, Palantir may offer a more solid upside if its AI solutions find more use in real-world enterprises
As far as the target price goes, the chatbot predicted that PLTR stock could trade between $100 and $160 by the end of H2 2025.
The verdict
Considering the differences between the two stocks, ChatGPT concluded that Nvidia is the better choice for investors seeking stability, given that its growth is tied to undeniable demand in training and inference workloads.
Conversely, it also noted that Palantir has a lower valuation base and expanding commercial footprint, meaning that it could be a dark horse outperformer.
Featured image via Shutterstock
