Nvidia CEO Jensen Huang Just Delivered Incredible News for Palantir Stock Investors
News Summary
Nvidia reported record revenue of $57 billion for its fiscal 2026 third quarter, up 62% year over year, easily beating estimates. Adjusted earnings per share surged 60% to $1.30. Its data center segment revenue grew 66% to $51.2 billion, driven by strong demand for AI-centric Blackwell chips. Management forecasts further acceleration in Q4, projecting $65 billion in revenue, representing 65% year-over-year growth. These results strongly counter concerns about an AI bubble, with Nvidia CEO Jensen Huang highlighting three massive platform shifts underway globally: CPU-to-GPU accelerated computing, the advent of generative AI, and the development of agentic and physical AI systems. Palantir, a crucial complement to AI infrastructure, demonstrated strong performance with its Artificial Intelligence Platform (AIP), excelling in connecting siloed data and enabling data-driven decisions. The company's Q3 revenue rose 63% to $1.18 billion, with adjusted EPS up 110% to $0.21. Its U.S. commercial segment revenue surged 121%, customer count jumped 65%, and total contract value soared 342%, signaling robust future growth. Despite Palantir's high valuation, its CEO aims for 10x revenue growth in the coming years.
Background
The advent of generative artificial intelligence has profoundly impacted the technology landscape, driving immense demand for AI computing power and data analytics solutions. Leveraging its decades of experience in data mining and analytics, Palantir Technologies launched its Artificial Intelligence Platform (AIP) in April 2023, which quickly became a gold standard for government and enterprise data-driven decisions, leading to a significant surge in its stock price. However, recent market discussions have raised concerns about a potential AI bubble and stalled growth, with prominent investors like Michael Burry publicly signaling such worries. In this context, investors are actively seeking evidence that the AI revolution is alive and well. Nvidia, as a leader in AI chips, has its financial performance closely watched as a key indicator of the AI market's health.
In-Depth AI Insights
What does Nvidia's sustained growth truly signify beyond simple demand for AI chips, especially amidst "AI bubble" rhetoric? Nvidia's robust performance indicates that the AI revolution is far from a short-term bubble but rather a long-term structural growth driven by fundamental, multi-platform shifts. - This includes the transition from CPU to GPU-accelerated computing, the transformation of existing applications and enablement of new ones by generative AI, and the development of agentic and physical AI systems. - These transformations necessitate massive infrastructure investments and are moving beyond proof-of-concept into widespread enterprise and government deployment, signaling continued strong capital expenditure for years to come. How does Palantir's strong performance, particularly in its U.S. commercial segment, strategically position it within this broader AI infrastructure build-out? Palantir's AIP acts as a critical "enabler" within the AI ecosystem, translating the underlying computing power provided by Nvidia into actionable business value. - As businesses and governments race to deploy AI, they face challenges in integrating complex AI systems with existing data silos. Palantir's AIP aggregates data and performs analysis, helping clients realize ROI from their AI investments. - Jensen Huang's high praise for Palantir's Ontology underscores its unique value and irreplaceable position within the enterprise AI stack. Given Palantir's current high valuation, what are the key factors its future stock growth potential primarily hinges upon? Palantir's high growth potential predominantly depends on its ability to continuously rapidly expand its U.S. commercial segment market share and demonstrate the broad applicability and high ROI of its AIP. - Despite a high valuation, the significant growth in its total contract value (TCV) and remaining performance obligation (RPO) indicates locked-in future revenue streams and accelerating demand. - If Palantir can achieve its CEO's stated goal of 10x revenue growth and effectively manage its high operational costs, the current valuation could be justified over the long term.