Nvidia dominates the artificial intelligence (AI) stock space, but several players are challenging its dominance heading into 2025. Finbold consulted OpenAI’s ChatGPT-4o tool for insights on which AI stocks might outshine Nvidia. Two promising contenders are Palantir and Advanced Micro Devices (AMD).
Palantir is transitioning into an AI giant by leveraging its proprietary platforms, such as Foundry and Apollo, to manage and deploy software. The company has secured notable wins, including a partnership with Shield AI to develop scalable AI-driven solutions for autonomous systems. FedRAMP authorization solidifies Palantir’s reputation as a secure cloud services provider, expected to attract more government contracts.
Analysts foresee Palantir leading the software AI space in 2025, with some predicting it will surpass Nvidia. Dan Ives from Wedbush Securities has raised its price target for PLTR to $75 and labeled it the ‘Messi of AI’. Despite impressive sentiments and fundamentals, Palantir faces challenges, including overvaluation concerns.
Meanwhile, AMD’s new product lineup aims to dominate the AI scene, targeting data centers and AI-specific workloads. The company’s MI300 series rivals Nvidia’s A100 and H100 GPUs in memory bandwidth and power efficiency areas. As demand for AI chips grows, AMD is likely to attract more developers and enterprises, potentially eating into Nvidia’s market share.
In 2024, AMD has enjoyed strong financials, with revenue increasing 18% year-over-year and net income surging 158%. The company forecast data center revenue to exceed $5 billion in 2024. While Nvidia has had a stellar year, AMD and Palantir have strong fundamentals that could help them rally in 2025.
However, the sustainability of the AI boom will be crucial. Both companies offer distinct strengths – Palantir excels in software-driven AI solutions, while AMD focuses on AI hardware innovation – positioning them to challenge Nvidia from complementary angles.
Source: https://finbold.com/ai-picks-two-semiconductor-stocks-to-outshine-nvidia-in-2025