For months, skeptics have suggested that AI spending was leveling out. Nvidia’s numbers told a very different story. The company reported $57 billion in revenue, a 62.5% jump over the prior year and a 22% increase from the previous quarter.
Profitability soared alongside it, with adjusted EPS climbing 60% and margins reaching an impressive 73.4%.
Key Points
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Nvidia’s blowout quarter confirms AI demand is still accelerating.
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Palantir’s AIP adoption is surging as enterprises operationalize AI.
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Multiple simultaneous computing shifts are fueling a long-lasting AI boom.
Nvidia’s Results Don’t Support the “AI Is Over” Narrative
Most striking was Nvidia’s data-center performance. Revenue from this segment hit $51.2 billion, up 66% year over year. That growth reflects real hardware orders from cloud providers, sovereign AI buyers, and large enterprises racing to scale their training infrastructure.
Supply-chain analysts note that Blackwell-generation GPUs are being pre-ordered a year in advance, and hyperscalers are running into power-grid constraints before chip supply constraints. In other words, demand is outpacing even the industry’s ability to build data centers.
CEO Jensen Huang made it clear what’s driving this is “off the charts” demand for Blackwell processors and a market where “GPUs are sold out.”
The notion that AI enthusiasm is cooling doesn’t hold up in the face of numbers like these.
Nvidia’s Strength Amplifies Palantir’s Opportunity
While Nvidia supplies the hardware, companies still need a way to integrate AI into operations, across supply chains, fraud detection, logistics, defense systems, and back-office processes. That’s where Palantir’s Artificial Intelligence Platform comes in.
Palantir’s recent results show just how quickly that need is scaling. Total revenue grew 63% year over year to $1.18 billion, and adjusted earnings more than doubled. Contract value surged 151%, setting the foundation for future quarters.
The U.S. commercial division, where AIP adoption is most visible, is growing even faster. Revenue rose 121%, and customer count expanded 65%. Contract value climbed an extraordinary 342%, a sign that companies are not just experimenting with AI, but committing to multi-year deployments.
Palantir says many AIP rollouts now show measurable ROI in under 90 days, which is shockingly fast for enterprise software, and one of the reasons Jensen Huang publicly called Palantir’s enterprise ontology “the single most important enterprise stack in the world.”
Nvidia’s growth reflects the build-out of AI infrastructure. Palantir’s growth shows how that infrastructure is actually being used.
Why AI “Bubble” Warnings Miss the Bigger Picture
Nvidia’s results illustrate a nuanced reality. As Huang put it, the world is undergoing three fundamental computing shifts at the same time: the move from CPUs to GPUs, the rise of generative AI, and the emergence of agentic and physical AI systems that act with increasing autonomy.
Any one of these transitions would require massive investment. All three happening simultaneously is unprecedented. That’s why power-grid upgrades, data-center construction, and optical-networking demand are hitting levels the industry hasn’t seen in decades. These are signs of a platform shift.
Palantir’s Future Looks Big, But It Isn’t Without Risk
Palantir isn’t cheap. Enterprise AI spending is expected to jump from roughly $200 billion today to well over $1 trillion within the next decade.
Palantir CEO Alex Karp has openly discussed the potential for a tenfold increase in revenue, an ambitious target, but not impossible given current adoption trends. Still, the stock will likely remain volatile.
Nvidia’s record-breaking quarter validated the broader AI investment cycle. Demand isn’t slowing. Infrastructure spending is accelerating. And organizations building on top of that new infrastructure need someone to help them connect their data, deploy models, and extract real ROI.
That’s exactly where Palantir shines. A decade from now, Nvidia may remain the backbone of AI hardware. But if Palantir becomes the backbone of enterprise AI decision-making, its upside could be even more dramatic. For investors willing to ride out volatility, it remains one of the most compelling long-term opportunities in the market.