Palantir Just Showed Why Nvidia Stock Can Plunge on May 21

Will AI make the world's archetypal trillionaire? Our squad conscionable released a study connected the 1 little-known company, called an "Indispensable Monopoly" providing the captious exertion Nvidia and Intel some need. Continue »

History has a mode of rhyming connected Wall Street

For each intents and purposes, Palantir crushed expectations with its first-quarter operating results. Revenue soared 85% to $1.63 cardinal connected the heels of 84% maturation successful U.S. authorities gross and a more-than-doubling successful U.S. commercialized sales. CEO Alex Karp besides upped Palantir's 2026 full-year income guidance from 61% income maturation to a caller projection of 71%.

Palantir is Wall Street's shining prima of AI applications successful action, with AI powering the Gotham software-as-a-service level that the U.S. authorities relies connected to program and execute subject missions.

Despite this staggering growth, Palantir shares person mislaid much than 8% of their worth successful the 2 days pursuing its report. The apt crushed down this diminution is that investors' expectations were excessively lofty.

Even with Palantir consistently beating Wall Street's statement and raising its guidance, the company's valuation didn't go immoderate little of an eyesore.

History has shown that each manufacture person astatine the forefront of a game-changing exertion has failed to support a price-to-sales (P/S) ratio supra 30 for an extended period. Palantir entered 2026 astatine a P/S ratio supra 100 and inactive boasts a P/S ratio northbound of 60. No income guidance would person been capable to assistance Palantir retired of humanities bubble territory.

Nvidia is improbable to conscionable the sky-high expectations of investors

When Nvidia takes halfway signifier connected May 20, it's a virtual fastener to present jaw-dropping income and nett growth. Its GPUs are unmatched successful presumption of compute capabilities, and the anchoring of customers to its merchandise and work ecosystem by the CUDA bundle level lone enhances its growth.