Back in March 2026, Palantir (PLTR) announced its sovereign AI OS Reference Architecture combining its software with Nvidia's (NVDA) hardware for secure and scalable AI deployments. More recently, however, both companies deepened their collaboration related to sovereign AI deployment. Announced on Sept. 10, the collaboration establishes an “AI stack combining Palantir sovereign AI and custom Nvidia Nemotron open models for complex supply chain operations,” with the first deployment of the AI stack to be within Nvidia’s own internal operations.
It’s important to note that this AI stack will find applications across industries like technology, agriculture, pharmaceuticals, manufacturing, and more, as well as within governments, helping companies and organizations to optimize their supply-chain operations. Further, sovereign AI deployment positions both Nvidia and Palantir as key players participating in government AI modernization.
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About Palantir Technologies (PLTR)
Headquartered in Aventura, Florida, Palantir provides software platforms and data analytics for both commercial and government customers. For fiscal 2025, Palantir reported 54% of revenue from government customers and the remaining 46% from the commercial segment. The company’s four principal software platforms include Gotham, Foundry, Apollo, and the Artificial Intelligence Platform (AIP).
In the last 52 weeks, PLTR stock has traded relatively sideways on concerns related to valuation. However, after reporting its second-quarter results, PLTR stock has bounced back strongly from oversold levels.
www.barchart.com In terms of valuation, Palantir stock currently trades at a forward price-to-earnings (P/E) ratio of 131.1 times and a price-to-sales (P/S) ratio of 89.7 times. While these valuation multiples look stretched, Palantir has been on a high growth trajectory and its cash flows have been swelling.
Palantir reported blockbuster Q2 earnings that surpassed analyst estimates on Aug. 3. Total revenue increased 93% on a year-over-year (YOY) basis to $1.935 billion. Within that, U.S. commercial revenue was a key growth driver, increasing 149% YOY to $764 million. U.S. government revenue growth was also robust, climbing 90% YOY to $809 million. At the same time, adjusted EBITDA for the quarter was $1.2 billion, implying a healthy margin of 62%. With adjusted free cash flow at $1.22 billion, Palantir's financial metrics for the quarter were robust overall, alongside an optimistic outlook. Importantly, total remaining performance obligations (RPO) swelled to $4.9 billion during the quarter, providing clear revenue visibility.
Based on 29 analysts with coverage, PLTR stock has a consensus “Moderate Buy” rating overall. While 21 analysts have a “Strong Buy” rating for the stock, six have a “Hold,” one analyst has a “Moderate Sell,” and one has a “Strong Sell” rating. The mean price target of $200.74 represents potential upside of 16% from current levels, while the most bullish price target of $255 suggests that shares could climb as much as 48% from here.
www.barchart.com About Nvidia (NVDA)
Headquartered in Santa Clara, California, Nvidia became the first company in history to reach a $5 trillion market capitalization back in October 2025. With Nvidia building much of the computing infrastructure of the AI era, top-line growth has been stellar over the past few years coupled with cash flow upside. The company has two reportable business segments, Compute & Networking and Graphics, the first of which has been the key growth driver amid the AI data-center boom.
Over the past 52 weeks, Nvidia stock has trended higher by more than 19%. The rally has arrived on the back of structural industry tailwinds and the company's quarterly results exceeding Wall Street estimates.
www.barchart.com Even after its sustained uptrend over the last few years, NVDA stock trades at an attractive forward P/E ratio of 23.9 times. With strong earnings growth visibility, the uptrend is also likely to sustain.
Nvidia has been on a high growth trajectory backed by big investments in the AI-infrastructure buildout. For Q2 fiscal 2027, Nvidia's results beat estimates, with revenue surging 106% YOY to $96.2 billion. Data-center revenue came in at $89 billion, up 117% YOY. Gross margin for the quarter was 75%, while operating cash flows were $24.1 billion.
Nvidia's data-center business is likely to remain the key growth driver in the coming quarters, with Vera Rubin expected to boost growth as production ramps up. From the perspective of value creation, Nvidia also returned roughly $26 billion to shareholders in Q2 through share repurchase and dividends.
Based on 50 analysts with coverage, NVDA stock has a consensus “Strong Buy” rating on Wall Street. While 45 analysts have a “Strong Buy” rating for the stock, three have a “Moderate Buy,” one has a “Hold,” and one analyst has a “Strong Sell” rating. The mean price target of $326.09 represents potential upside of 54% from current levels. Further, the most bullish price target of $515 suggests that NVDA stock could climb as much as 143% from here.
www.barchart.com On the date of publication, Faisal Humayun Khan did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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