Palantir Stock vs. Nvidia Stock: Billionaires Buy One and Sell the Other

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Palantir Technologies (NASDAQ: PLTR) shares have soared by 285% this year, while Nvidia (NASDAQ: NVDA) shares have advanced by 175%. Both companies play important roles in the burgeoning artificial intelligence (AI) economy, but several billionaire fund managers sold some of their Palantir stakes and bought more shares of Nvidia during the third quarter.

  • Cliff Asness of AQR Capital Management sold 99,140 shares of Palantir, cutting his position by 16%. Meanwhile, he added 719,710 shares of Nvidia, upping his position by 5%. Nvidia is now the largest position in AQR’s portfolio.

  • Ken Griffin of Citadel sold 5.1 million shares of Palantir, reducing his stake by 91%. Meanwhile, he bought 4.7 million shares of Nvidia, increasing his stake by 194%. Nvidia is the second largest position in Citadel’s portfolio, excluding options contracts and index funds.

  • Steven Schonfeld of Schonfeld Strategic Advisors sold 60,384 shares of Palantir, closing his position in it completely. Meanwhile, he added 703,192 shares of Nvidia, increasing his stake by 217%. Nvidia is the largest holding in Schonfeld’s portfolio, excluding index funds.

Palantir provides data analytics software. Its core Gotham and Foundry platforms integrate information and machine learning (ML) models into an ontology — a digital layer that defines the relationships between real-world objects. Using prebuilt and custom analytics tools, businesses can query the ontology layer to surface insights that improve decision-making.

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Palantir also has an artificial intelligence platform called AIP, which brings generative AI support to its core products, letting users engage with that software using natural language. For instance, procurement teams managing supply chains with Foundry can simply ask the platform to review problems and propose solutions as they arise.

While many vendors sell AI and analytics tools, Palantir believes it is unique in its ability to operationalize AI. In other words, Palantir says its software lets clients move prototype use cases to production more effectively than other solutions. There may be a bit of posturing in that belief, but analysts have recognized Palantir as a leader in AI/ML platforms.

Palantir reported excellent financial results in the third quarter, beating estimates on the top and bottom lines. Revenue increased 30% to $725 million, and non-GAAP net income surged 43% to $0.10 per diluted share. Management attributed its strong performance to momentum with AIP.

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