Palantir Stock Is Rising As AI Hits 'Tipping Point': What's Going On?

Palantir Technologies Inc PLTR shares are moving higher in Wednesday’s after-hours session following better-than-expected earnings results from Nvidia Corp NVDA. Here’s what you need to know.

What To Know: Nvidia reported fourth-quarter revenue of $22.1 billion, which beat the consensus estimate of $20.62 billion. The company reported quarterly earnings of $5.16 per share, which beat estimates of $4.64 per share.

Data center revenue was up 409%, gaming revenue climbed 56%, professional visualization revenue increased 105% and automotive revenue declined 4% on a year-over-year basis.

Nvidia guided revenue for fiscal year 2025 at approximately $24 billion, plus or minus 2%, versus estimates of $22.16 billion.

“Accelerated computing and generative AI have hit the tipping point. Demand is surging worldwide across companies, industries, and nations,” said Jensen Huang, founder and CEO of Nvidia.

“The year ahead will bring major new product cycles with exceptional innovations to help propel our industry forward.”

Check This Out: Nvidia Q4 Earnings Highlights: Revenue Beat, EPS Beat, Q1 Guidance And More

Both Nvidia and Palantir have benefitted from surging AI demand over the last year and a half. Palantir reported its quarterly results in early February. The company said it continued to see outsized demand for its AI platform.

Several other AI-related names are moving higher alongside Nvidia, including C3.Ai Inc AI, SoundHound AI Inc SOUN, and BigBear.Ai Inc BBAI. Several chipmakers are also getting a boost as Nvidia shares move higher.

It’s also worth noting that Nvidia reported investments in Arm Holdings, Recursion Pharmaceuticals, SoundHound AI, TuSimple Holdings and Nano-X Imaging earlier this month in a 13-F filing with the SEC. All of these names are also moving higher following Nvidia’s results.

See Also: Cramer Celebrates ‘National NVIDIA Day,’ Compares CEO Jensen Huang To Taylor Swift

PLTR Price Action: At publication time, Palantir shares were up 3.96% after hours at $23.64, according to Benzinga Pro.

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