Despite their differences, Nvidia (NASDAQ: NVDA) and Palantir (NASDAQ: PLTR) have much in common. Both stocks enjoy significant investor optimism, both companies have been major players in the ongoing artificial intelligence (AI) boom, and both firms might be extravagantly overvalued given their recent gains.
To begin with, Nvidia started its staggering rise soon after the original public version of ChatGPT was launched in late 2022 and gained some $3 trillion in market capitalization. The last 12 months have also been exceptional and NVDA shares are up 142.45% to their press time price of $145.16.
For Palantir, the last 6 months have been especially good as they featured an exceptional rally driven by numerous factors, including the inclusion in the S&P 500 index and the relisting on Nasdaq. The last 52 weeks have also, as a whole, been strong, and PLTR stock gained 314.14% and climbed to its press time price of $71.77.
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Under the circumstances, it may be difficult to gauge which of the two technology companies is the better investment for 2025 and Finbold elected to consult its very own AI price prediction tool to try and figure out which one has more upside potential.
Finbold AI predicts whether PLTR or NVDA have more upside ahead
When asked to determine how Nvidia stock might perform by the end of the first quarter (Q1), Finbold’s prediction tool, using various trading signals including the relative strength index (RSI) and simple moving average (SMA), concluded that NVDA is set for a 10.77% rally to $160.83.
The average forecast was the result of ChatGPT-4o concluding the semiconductor giant is poised to gain 6.75% within the time frame, and Claude 3.5 Sonnet a full 15.36%.
Simultaneously, Finbold’s AI price prediction tool forecasted PLTR shares will rise 16.89% to $87.25 by the end of Q1, with ChatGPT-4o forecasting a 13.88% upside and Claude 3.5 Sonnet 19.9%.
ChatGPT-4o makes its AI stock pick for 2025
Finally, Finbold also consulted ChatGPT-4o directly on whether Nvidia or Palantir is the better investment for 2025. Though the AI was careful to consider the merits and drawbacks of both, it opined that NVDA stock is the better choice, stating:
It’s a market leader with a proven track record, dominating critical sectors like AI, gaming, and data centers. While it’s expensive, its growth story is far less speculative than Palantir’s, and its diversification minimizes risk. For 2025, NVIDIA is the stronger, more reliable choice.
It did, however, also explain that PLTR is more enticing for traders ‘seeking high-risk, high-reward speculative growth.’
Featured image via Shutterstock
