AI boost drives stock prices: NVIDIA and Palantir at the forefront

The ongoing enthusiasm surrounding Artificial Intelligence has led not only to technological innovations but also to remarkable developments in the stock market. Notably, NVIDIA and Palantir have significantly benefited from this trend, propelling their stock prices to dizzying heights. In the context of the bullish market environment and two years after a low point, the S&P 500 shows record levels, attributable in part to the robust U.S. economy and the dynamic developments in the AI sector. The stock market has seen significant gains in recent years, with the AI sector standing out as a driving force. Companies like NVIDIA are among the most prominent beneficiaries of this development. The demand for their specialized graphics processors, which are essential for AI applications, remains unbroken. According to CEO Jensen Huang, the hype around the new Blackwell chips is further driving up the stock price. These chips are characterized by higher performance compared to their predecessors and are highly favored by giants like Microsoft and Meta Platforms. While NVIDIA impresses with innovative GPU solutions, Palantir has also achieved remarkable success with its AI platform. The company has significantly increased the number of its commercial customers in the U.S. and recorded a notable growth in commercial revenues. Combined with the declining interest rates from the Federal Reserve, this sets another upward trend in motion, as financing costs decrease and profit margins increase. Analysts are optimistic about the future performance of these stocks. For NVIDIA, the short-term price target is well above the current level, while Palantir is also seen to have further growth potential. These developments suggest that the current stock market giants could achieve even more success if the AI revolution continues to gain momentum.