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Nvidia & Palantir: AI's Unstoppable Duo?
11 Dec
Summary
- Nvidia's GPUs dominate AI data centers, holding over 90% market share.
- Palantir's Gotham and Foundry platforms offer unique AI/ML solutions.
- Insider actions at Nvidia and Palantir diverge from investor optimism.
Artificial intelligence has captured Wall Street's imagination, driving significant investment and capital for nearly three years. Companies empowering software with decision-making and efficiency gains without human oversight stand to revolutionize numerous global industries. Nvidia and Palantir Technologies have emerged as major beneficiaries, with Nvidia’s market value soaring and Palantir shares experiencing dramatic growth since early 2023.
Nvidia's dominance in AI is fueled by its unparalleled GPUs, essential for AI data centers, which power over 90% of these facilities. Its latest GPU generations offer superior compute capabilities, allowing for premium pricing and high gross margins nearing 75%. The CUDA software platform further solidifies customer loyalty by enabling developers to maximize GPU potential for tasks like training large language models.
Similarly, Palantir Technologies provides unique AI and machine learning platforms, Gotham and Foundry, for which scaled, direct replacements are scarce. While investor expectations for continued growth remain high, insider trading activity at both Nvidia and Palantir in recent times suggests a divergence from widespread optimism, hinting at potential shifts in strategy or market perception.
