New Nvidia and Palantir Price Targets as Both Stocks Hit All-Time Highs
As Nvidia and Palantir team up, shares of the two tech stocks climb to new heights.
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On Wednesday, Palantir Technologies (PLTR) jumped 4.8% to reach a new all-time high. Shares of the Denver, Colorado-based software analytics company have climbed 164% year-to-date, and gained 341% over the past 12 months.
Earlier this week, Palantir announced a deal with AI chip manufacturer Nvidia (NVDA) . Palantir has agreed to use Nvidia’s software and chips to provide logistical services for its corporate customers.
Like Palantir, Nvidia traded at an all-time high on Wednesday, as the stock gained 3%. Investors are hopeful that trade tensions will ease after a meeting between Presidents Trump and Xi. An agreement would be positive for Nvidia's business interests in China.
Powered by the frenzy for its AI chips, this week Nvidia became the first company ever to achieve a market capitalization of $5 trillion. Nvidia shares have gained 90% over the past six months.
Charting Palantir and Nvidia
Palantir and Nvidia are soaring to new heights, even as their respective earnings reports draw nearer. Palantir is scheduled to report after the close on November 3, while Nvidia’s report is scheduled for November 19.
One year ago, we recommended Palantir for the first time. At the time, the stock was trading at $43, its all-time high, and I was concerned that we were late to the party. Since then, the stock has gained over 450%.
Now it appears the stock is destined to rise even higher. On Wednesday, Palantir broke out of an ascending triangle pattern (black lines).
Based on the size of that bullish formation, along with strong momentum in both the stock and the overall market, our new price target for Palantir is $240.
Nearly six months ago, after a relatively quiet period for the stock, we wrote that it was Nvidia’s time to steal the spotlight. Since then, shares of the Santa Clara, California-based chip giant have climbed 83%.
Meanwhile, Nvidia has broken out from a symmetrical triangle formation (black lines). Based on this bullish pattern, shares of Nvidia are headed to $225.
The Bottom Line
One of the concerns I’m hearing is that too much of the market’s gains are concentrated in a handful of tech and AI-related names, such as Nvidia and Palantir.
That’s a legitimate concern, but it’s also one that has been repeated for years now. We've been hearing it since the term Magnificent Seven was first used to reference large-cap stocks.
Perhaps a day will come when the concentration of gains in a handful of giants will no longer favor the bulls. That day has yet to arrive. In the meantime, there is no reason to change course.
At the time of publication, Ponsi was long PLTR and NVDA.
