Nvidia’s Q2 Blowout Supercharges Palantir (PLTR) Growth Prospects

Nvidia just dropped a seismic earnings bomb—and Palantir's riding the shockwave.

AI's Hardware Engine Roars

Another quarter, another massive beat from the chip giant. Nvidia's relentless execution doesn't just please shareholders—it validates the entire infrastructure stack behind artificial intelligence. When the picks-and-shovels vendor keeps hitting home runs, you pay attention to who's buying the shovels.

Palantir's Platform Play

For Palantir, this isn't just a sympathy rally. Their Foundry and Gotham platforms run on exactly the kind of computational muscle Nvidia provides. More GPU firepower means more complex models, which means more clients needing Palantir's signature data-integration moat. It's a virtuous cycle—with a side of hockey-stick growth.

Wall Street's Reluctant Nod

Even the most cynical analysts can't ignore the tailwinds. Sure, Palantir's valuation still makes traditional finance folks clutch their pearls—but since when did legacy metrics matter in a market betting on paradigm shifts? Sometimes, the trend is your friend… even if you hate admitting it.

Bottom line: Nvidia’s win isn’t just a signal—it’s a catalyst. And Palantir’s holding the match.

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In fiscal Q2, Nvidia reported revenue of $46.7 billion, up 56% from last year, and adjusted EPS of $1.04, both ahead of Wall Street estimates. Its data center business, the core of AI demand, jumped 56% to $41.1 billion. These results show that spending on AI infrastructure remains resilient, providing a strong backdrop for Palantir’s software business.

Palantir Delivers Strong Q2 on AI Momentum

Against this backdrop, Palantir posted its own record Q2 earlier this month. Revenue climbed 48% to $1 billion, while adjusted EPS jumped 78% to $0.16. Growth was driven by the U.S. commercial unit, where sales soared 93% to $306 million. Meanwhile, contract value for the segment surged 222% to $843 million, while backlog ROSE 77% to $2.42 billion.

These numbers highlight that Palantir is not only benefiting from AI interest but also converting it into long-term commitments.

Valuation Still High, but Growth Strong

Even with strong results, Palantir’s valuation remains a sticking point. Morningstar’s (MORN) Mark Giarelli recently told Bloomberg that while Palantir is “a great company,” its rich valuation “causes heartburn” for investors. Bloomberg Intelligence’s Damian Reimertz added that Palantir WOULD need to generate about $60 billion in revenue over the next year to trade in line with peers, a staggering figure compared to current levels.

Still, Palantir CEO Alex Karp has outlined ambitious goals, including plans to grow revenue tenfold in the coming years. And with Nvidia’s results confirming heavy investment in AI infrastructure, Palantir seems well positioned among the software names looking to capitalize on that trend.

Is PLTR Stock a Buy? 

Turning to Wall Street, analysts have a Hold consensus rating on PLTR stock based on five Buys, 13 Holds, and two Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average PLTR price target of $156.78 per share implies 0.04% upside risk.