Image source: Getty Images. <\/p>\n
Palantir has been a growth machine for several quarters. Every time doubters may think the business might be due for a slowdown, it manages to pump out strong results as it continues to prove them wrong.<\/p>\n
On Nov. 3, the tech company<\/a> did it yet again. Its reported third-quarter revenue of $1.18 billion for the period ended Sept. 30, which was more than the $1.09 billion that analysts were expecting. And its adjusted per-share earnings of $0.21 was also better than estimates of $0.17.<\/p>\n Not only was it a solid beat, but the company raised its revenue guidance for the full year to around $4.4 billion. That’s a sizable increase from its full-year guidance back in August, when it was projecting sales to be around $4.1 billion. This past quarter, Palantir’s top line rose by 63% year over year, which was an acceleration from the 48% growth it posted back in the second quarter.<\/p>\n By comparison, Nvidia’s growth rate when it last reported earnings in August was 56% (for the period ended July 27). And a quarter earlier, it was 69%. While Nvidia has been slowing, Palantir’s growth has been ramping up.<\/p>\n In terms of sheer growth, Palantir looks superior to the top chipmaker today. But a key advantage for Nvidia is on the bottom line. Its per-share profit is far higher, which is why, even though Nvidia is the most valuable company in the world, with a market cap of $4.8 trillion, its price-to-earnings multiple of 56, is far lower than the mammoth 430 times earnings that Palantir trades at (its market cap is around $450 billion). Valuation is important, because it more effectively puts how expensive a stock truly is into context, rather than just looking at share price or market cap alone.<\/p>\n \u7e7c\u7e8c\u95b1\u8b80 <\/p>\n A recent filing revealed that prominent hedge fund manager Michael Burry has put options on Palantir’s stock, indicating he may be worried that it is overpriced and due for a decline. Palantir CEO Alex Karp was perplexed by the news and that people would take short positions on the stock.<\/p>\n “I do think this behavior is egregious and I’m going to be dancing around when it’s proven wrong,” Karp said on CNBC.<\/p>\n The bearish position on Palantir by Burry and other skeptics may explain why despite the company’s seemingly strong results, the AI stock has been falling rather than rising in value.<\/p>\n There’s no doubt that Palantir has been the better buy this year, but it has become a highly speculative stock to own. Although Nvidia isn’t a cheap-looking stock based on earnings, at least its valuation is somewhat justifiable.<\/p>\n With Palantir, the premium is so incredibly high that it becomes a far riskier investment to be holding. That’s why despite its impressive results, I’m still not convinced that Palantir’s rally can continue. Investors are better off going with more of a sure thing in Nvidia.<\/p>\n Before you buy stock in Palantir Technologies, consider this:<\/p>\n The Motley Fool Stock Advisor analyst team just identified what they believe are the\u00a010 best stocks<\/a> for investors to buy now\u2026 and Palantir Technologies wasn\u2019t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.<\/p>\n Consider when Netflix made this list on December 17, 2004… if you invested $1,000 at the time of our recommendation,\u00a0you\u2019d have $595,194!* Or when Nvidia made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation, you\u2019d have $1,153,334!*<\/p>\n Now, it\u2019s worth noting\u00a0Stock Advisor\u2019s total average return is 1,036% \u2014 a market-crushing outperformance compared to 191% for the S&P 500.\u00a0Don’t miss the latest top 10 list, available with\u00a0Stock Advisor, and join an investing community built by individual investors for individual investors.<\/p>\n See the 10 stocks \u00bb<\/a><\/p>\n *Stock Advisor returns as of November 3, 2025<\/p>\n David Jagielski<\/a> has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Nvidia and Palantir Technologies. The Motley Fool has a disclosure policy<\/a>.<\/p>\n