Palantir just provided the second quarter results, which exceeded Wall Street expectations.
More broadly, the results show that the implementation of AI is underway.
As a major provider of chips for AI, NVIDIA has a lot of benefits from continuing to adopt AI.
Our 10 Better Stocks than NVIDIA›
The past few years Nvidia(NASDAQ: NVDA). The company pioneered the graphics processing unit (GPU) that introduced the artificial intelligence (AI) revolution. The resulting surge in sales and profits pushed NVIDIA to a $4 trillion market capitalization, the first company to achieve this distinction.
However, some investors fear that hype has surpassed innovation, and the AI gravy train will inevitably slow down. As a result, many are looking for signs that enterprises continue to adopt AI tools and integrate these next-generation algorithms into their operations.
Palantir Technology(NASDAQ: PLTR) The clearest evidence has just been provided that AI adoption has reached a turning point.
Image source: Getty Images.
Saying that Palantir’s results exceeded expectations may be an understatement. In the second quarter, $1 billion in revenue soared 48% to 14% in the quarter. This fueled the adjusted earnings per share (EPS) at $0.16, a surge of 78%.
In the context, analysts’ consensus estimates require revenue of $939 million and adjusted earnings per share of $0.14, so Palantir cleared what already high bar investors set.
In addition to the title figures, the show’s star is Palantir’s U.S. business sector, which includes the company’s flagship artificial intelligence platform (AIP). Revenue in the segment accelerated to $306 million for the eighth consecutive quarter, up 93% year-on-year and 20% in turn. Meanwhile, the number of customers in the segment climbed 64% as new businesses flocked to AIP. This helped increase the unit’s total contract value to $843 million, a surge of 222%.
It is worth noting that not all benefits will come this quarter, but rather that the company is laying the foundation for future growth. Palantir’s Remaining Performance Obligation (RPO) represents revenue that has not met its contractual obligation to sell, soaring 77% to $2.42 billion. This provides insights into future growth, and the future looks bright.
Besides the good news for Palantir investors, there is more to the outcome about what’s going on in the AI landscape.
NVIDIA CEO Jensen Huang recently predicts that data center spending that supports AI will soar 300% to more than $1 trillion by 2028.
Big Tech’s latest revelation seems to support this view. Each of the “Big Three” cloud infrastructure providers has revealed plans in recent weeks to increase their 2025 capital expenditure (CAPEX) to support customers’ growing demand for AI. This often translates into revenue growth for NVIDIA, as its GPU is the gold standard for AI processing.
But, more broadly, the adoption of AI is moving downstream, as evidenced by Palantir’s acceleration results. In order for enterprises to implement AI internally, they will need the necessary infrastructure (read: chips with AI capabilities) to power these systems, which is also good for Nvidia.
Despite significant evidence to the contrary, opponents continue to suggest that AI implementation is slowing down. Most importantly, in healthy editing, the adoption of AI continues.
According to IoT Analytics, NVIDIA dominated the data center GPU market with a share of 92%. However, as AI goes beyond data centers, NVIDIA will benefit from the further spread of AI, as its processors are table bets for AI model training and inference.
Since the advent of AI in early 2023, the AI revolution has grown numerous earnings for NVIDIA as the stock soared 1,120% (as of this writing). The stock is currently trading for expected earnings for next year 31 times, and while some stocks may call this bubble, I think it is a reasonable price to pay for companies that expect revenue to grow by 54% this fiscal year.
NVIDIA has established itself as a leader in AI chips, and despite the stock’s epic operation, evidence suggests there may be more.
Before you buy stocks at NVIDIA, consider the following:
this Motley Fool Stock Advisor The analyst team just confirmed what they think is 10 Best Stocks For investors, buying now…Nvidia is not one of them. Ten stocks with layoffs could generate monster returns in the coming years.
When to consider Netflix On this list on December 17, 2004…If you invested $1,000 when you suggested, You will have $631,505! *Or when Nvidia This list was listed on April 15, 2005…If you invested $1,000 when you suggested, You will have $1,103,313! *
Now, it’s worth noting Stock Consultant Total average return is 1,039% – The performance on the market is better than the performance of the 500 S&P 500 index. Stock Consultant.
View 10 stocks »
*Stock consultant returns as of August 4, 2025
Danny Vena has positions in NVIDIA and PALANTIR Technologies. Motley fool has a place and recommends Nvidia and Palantir Technologies. Motley Fool has a disclosure policy.
Palantir CEO Alex Karp just made incredible news for NVIDIA stock investors, originally published by Motley Fool
