Nvidia Dominates Booming AI Chip Market, But Palantir's AIP Product Fuels Shift to Commercial Clients
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Nvidia is the dominant player in AI chips, controlling over 80% of the market, and has seen triple-digit revenue and profit growth over the past year.
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Palantir launched its Artificial Intelligence Platform (AIP) last year which is driving strong commercial revenue growth, especially in the US.
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Palantir is shifting focus from government to commercial clients and its AIP product is key to future growth.
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Even after huge gains recently, Nvidia trades at a reasonable 31x forward earnings given its market dominance and growth.
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Palantir may look expensive trading at 74x forward earnings but its shift to commercial and AIP justify a premium valuation.