Palantir rides the AI wave as Nvidia’s blowout results reaffirm the AI infrastructure boom
Palantir Technologies continues to ride the wave of AI adoption, a trend reinforced by Nvidia’s latest blockbuster performance and the rapid uptake of Palantir’s Artificial Intelligence Platform (AIP). Since unveiling AIP in April 2023, Palantir has seen its stock surge dramatically, with the run-up described as a massive multibagger by investors riding the AI curve.
Nvidia’s AI-driven momentum sets the tone
Nvidia reported a standout quarter in its fiscal 2026, with revenue of $46.7 billion, up 56% from a year earlier and 6% quarter over quarter. Adjusted earnings per share came in at $1.05, up 54% year over year. The data center segment—home to chips powering AI workloads—delivered $41.1 billion in sales, a key driver of the results. Analysts had expected roughly $46.1 billion in revenue and $1.01 in EPS, underscoring Nvidia’s ability to exceed expectations even as it faces a complex export environment. Export restrictions on H20 chips to China weighed on the quarter, though those restrictions have since been lifted and Nvidia is pursuing a successor chip, the B30A, based on its Blackwell architecture. Adding to the positive sentiment, Nvidia announced a new $60 billion share repurchase authorization, supplementing $14.7 billion still available under its prior plan.
The broader takeaway is clear: demand for AI infrastructure remains robust, a backdrop that supports Palantir’s own growth story.
Palantir’s quarterly performance reinforces the AI adoption thesis
Palantir disclosed a second-quarter revenue of $1.0 billion, up 48% year over year and 14% from the prior quarter. Adjusted earnings per share rose 78% year over year to $0.16. The crown jewel of Palantir’s results remains its U.S. commercial segment, which includes AIP, where revenue jumped 93% year over year to $306 million. The segment also added customers at a rapid pace, with a 64% increase in customer counts. Total contract value in the unit jumped 222% to $843 million, while Palantir’s remaining performance obligation (RPO) climbed 77% year over year to $2.42 billion, signaling substantial future revenue potential.
Customer wins and real-world impact
Palantir continues to highlight real-world outcomes tied to AIP deployments. The Cleveland Clinic, for example, reported tangible efficiency gains after adopting AIP, including a 38-minute reduction in emergency room wait times, a 40% drop in unused orthopedic operating room time, and a 75% reduction in time spent calculating bed capacity. Such testimonials help illustrate how AI-enabled decision support translates into meaningful operational improvements across complex environments.
Valuation and long-term outlook
Palantir’s stock still trades at a premium, reflecting high expectations for continued rapid growth. The company is currently valued well above traditional benchmarks, with some estimates placing next-year earnings at a lofty multiple. CEO Alex Karp has voiced ambitious plans to accelerate revenue growth substantially over the coming years, aiming to tenfold revenue in the longer term. That kind of trajectory would require sustained execution across new and existing customers, expansion of AIP’s footprint, and continued expansion of use cases beyond early adopters.
For investors watching the story from the sidelines, a cautious approach can be prudent. If you’re attracted by Palantir’s growth potential but wary of the high earnings multiple, a strategy like starting with a small position and using dollar-cost averaging can help manage entry price and ride the upside as AIP deployment expands.
What to watch next
– AIP adoption pace across industries and beyond there to new verticals.
– Additional contract wins and expansion within the US commercial segment, including RPO growth dynamics.
– Competitive landscape and how Palantir differentiates its offerings through data integration capabilities and near real-time insights.
– Regulatory and geopolitical developments affecting AI hardware supply chains, particularly around high-performance chips.
Summary
The AI landscape continues to accelerate, with Nvidia delivering evidence of sustained demand for AI infrastructure and Palantir leveraging that momentum through AIP-driven growth. Palantir’s second-quarter results show strong top-line and operational momentum, especially in its U.S. commercial segment, while customer outcomes like those at the Cleveland Clinic illustrate the practical value of AI-enabled decision support. If the long-term trajectory holds, Palantir’s growth path could remain robust, albeit with continued scrutiny of valuation and execution against a crowded and fast-evolving field.