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Will NVIDIA continue to be the AI stock superstar?
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Palantir's AI-driven earnings may not justify its share price.
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Apple may have gone through a strong iPhone cycle and AI opportunities are still moving forward.
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Our 10 Better Stocks than NVIDIA›
As tech investors have observed, artificial intelligence (AI) has driven many stocks since the release of OpenAI's GPT-4. Thanks to the benefits of this technology, several individual stocks and stock indexes have reached record highs in recent trading.
This requires many AI stocks to set new climaxes. Additionally, Grand View Research predicts that the AI sector will have a compound annual growth rate (CAGR) of 32% by 2033, leading to questions about what will happen next, especially for individual stocks in the industry. With that in mind, three analysts from Motley Fool shared their insights on some of the most critical AI stocks and where they might be starting from here.
Image source: Getty Images.
Jack Leach (Nvidia): My choice is Nvidia (NASDAQ: NVDA). There is no doubt that NVIDIA (more than any other company) is the main beneficiary of the AI revolution. After all, this is a company that has become the largest company through global market capitalization in just a few years.
So, what are NVIDIA investors? What is Company cap? Or is there no ceiling at all?
Obviously, the answers to these questions revolve around the AI ecosystem and the main role of NVIDIA in it. If the AI revolution continues to move forward, so will Nvidia. If AI investment slows down or collapses, NVIDIA's stock will fall. Furthermore, what if the new competitor challenges NVIDIA’s huge leadership in the graphics processing unit (GPU) market?
First, there are legitimate concerns about the amount of AI infrastructure spending – what will the rate of return on investment (ROI) companies get from it. Yuan platform,,,,, Tesla,,,,, Microsoft,,,,, Amazon,,,,, lettermany others are investing in billions of dollars in AI infrastructure – a large part of which is in the form of Nvidia’s advanced GPUs. These companies have their own unique vision to leverage their AI resources and their own ROI expectations.
At present, there is no indication that their ROI is not measured. Indeed, the continuous escalation of investment shows that ROI is even better than expected.
Second, indeed, competitors will eventually close the NVIDIA gap. That is the essence of capitalism. However, the question remains how long the process will take to work. According to the estimate compiled by Yahoo!! NVIDIA's finance is expected to generate $20.6 billion in revenue in the current fiscal year (the 12 months ended January 27, 2026) and nearly $275 billion in revenue over the next 12 months.
Therefore, competition will eventually emerge. Nevertheless, it is not expected to significantly affect NVIDIA growth over the next 18 months.
NVIDIA remains the top dog in the AI industry and the broader stock market. Overall, AI investment remains strong, indicating that companies are making substantial gains from AI spending. Finally, NVIDIA's competitors remained with challenges that completely challenged the company's strong sales growth for many years. In short, NVIDIA remains an AI stock superstar.
Will be heavy (Palantir): Palantir technology (NASDAQ: PLTR) It has been an AI company since its inception. The technology plays a key role in providing analytical insights in the areas of national security and business.
The recent launch of its AI-based Generative Artificial Intelligence Platform (AIP) undoubtedly boosted these features. Many customers from different businesses have reported shocking productivity gains. Among such improvements, Palantiel's stock has increased by nearly 370% compared to last year.
Unfortunately for this stock bull, its financial problems question the near-term direction of Palantir stock. In the first half of 2025, Palantir earned $541 million in net income attributable to co-stakeholders, with an annual earnings of 126%.
Although this is an impressive volume of growth in any way, the stock price has insufficient returns. Therefore, Palantir reached the stratosphere valuation. Even if investors can reject 592 price-to-earnings ratios, their price-to-price ratios are far away from S&P 500The average sales are 3.4.
Does this mean that Palantir's stock is crashing, or at least stopping? Not necessarily, because it is always possible to surpass expectations or find other factors that drive stocks higher.
The problem with these valuations is that they price Palantir stock to be perfect. This means that any hint of negative news can trigger a large number of sold out, making buying stocks at current prices very risky.
In this case, investors should probably avoid investing new money to work in Palantir. Furthermore, if a person's risk tolerance is not suitable for owning such expensive stocks, then selling should be considered.
Justin Pope (Apple): Iconic Electronic Titan apple (NASDAQ: AAPL) It faces considerable criticism due to the launch of its AI iOS feature called Apple Intelligence.
It would have been a simple layup – with more than 2.35 billion active iOS devices worldwide. Successfully bringing AI to Apple users almost guarantees the company’s position as a top AI company, where next-generation technologies will further enhance its already sticky ecosystem.
Unfortunately, Apple lost the ball. The company has been working to ship first-party AI features, since postponed its upgraded Siri, Apple's virtual personal assistant, to its 2026 release date. But don't write Apple temporarily. The company continues to focus on bringing sophisticated premium hardware products to the market, allowing its iOS ecosystem to shine.
Apple has just launched the latest iPhone models: the 17, 17 Pro and Pro Max, as well as the new, slim design model, the iPhone Air. Based on early signs, Apple may experience a strong hardware cycle. CEO T-Mobile Recently it was pointed out that iPhone sales have been at an all-time high. Industry experts also pointed to a strong demand for the new iPhone range.
Apple eventually had to provide its devices with work and compelling AI capabilities, but it's clear that Apple's core hardware product didn't lose the fastball. This should give companies time to find out AI and keep stocks on the radar any investor is looking for AI, but rather stick to the blue chip champion than roll dice on unproven or speculative AI stocks.
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Jake Lerch posts in Alphabet, Amazon, NVIDIA and Tesla. Justin Pope has no position in any of the stocks mentioned. Will Healy has no position in any of the stocks mentioned. Motley Fool owns and recommends letters, Amazon, Apple, Metaplatform, Microsoft, Nvidia, Palantir Technologies and Tesla. Motley Fool recommends T-Mobile US and recommends the following options: Long 2026 $395 Microsoft Phone and January 2026 Short Microsoft $405 Phone. Motley Fool has a disclosure policy.
What’s next for these three artificial intelligence (AI) stocks? Originally published by Motley Fool