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,

Leading companies on the cutting edge of next-big-thing innovations don't have the best track record of sustaining parabolic moves higher.

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.

When investors think about high-flying artificial intelligence (AI) stocks, Nvidia or Palantir Technologies probably come immediately to mind. Could buying Soundhound AI stock today set you up for life?

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

The picture in premarket trade was not looking good for many of the top tech stocks. Nvidia shares fell 3%, to $131.70, as Palantir Technologies, Tesla, Advanced Micro Devices and bitcoin holder MicroStrategy also lost ground.

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.

Four of the stocks listed above are currently outperforming the benchmark S&P 500 in 2025. But Constellation Energy and Vistra are leading the way, with year-to-date returns of 44% and 35%, respectively. Those gains speak to their strong market positions.

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