Nvidia (NASDAQ: NVDA) and Palantir Technologies (NASDAQ: PLTR) have recently been two of the hottest stocks on Wall Street because both companies play a key role in the artificial intelligence economy.

Palantir Technologies (NASDAQ:PLTR) has been one of the best-performing artificial intelligence stocks over the past year, even better than Nvidia (NASDAQ:NVDA). Where the chipmaker returned 171% for investors in 2024,

Finbold consulted its very own AI stock price prediction tool to gauge if Nvidia or Palantir shares are a better investment in 2025.

Palantir stock skyrocketed in 2024, driven largely by trading multiple expansion. Read why I downgrade PLTR from sell to strong sell.

Alongside its strong growth, Palantir is profitable, consistently producing around 20% profit margins. While some other software companies' profit margins can surpass 30%, 20% is still a noteworthy figure, as it shows that management values profitability alongside growth.

Voyager Technologies files for IPO, has partnership with Palantir, as the defense and space sector gains momentum under Trump. PLTR stock bullish.

While Palantir Technologies stock (NASDAQ: PLTR) had a stellar 2024, with its stock rising by about 4x, driven by the market frenzy surrounding artificial

Trevor Jennewine has positions in Nvidia and Palantir Technologies. The Motley Fool has positions in and recommends Microsoft, Nvidia, and Palantir Technologies. The Motley Fool recommends the ...

Our expert who first called NVIDIA in 2009 is predicting 2025 will see a historic AI breakthrough.

But now there is one analyst who's again projecting upside: Wedbush's Daniel Ives boosted his target price to $90 on Thursday morning. Palantir's stock (PLTR) closed at $76.87 on Wednesday, so his target implies it can rise 17% from there, on top of a 344% surge seen over the past year.

The future looks brighter for AI stocks, and the two standouts are NVIDIA and Palantir, making them enticing buys.

With record earnings and the carrier's 2025 guidance signalling robust demand trends, analysts are bullish on the stock.