Nvidia's earnings report was explosive, indirectly favourable for Palantir?

NVIDIA's Q3 financial report data is impressive: revenue of $57 billion (up 62% year-over-year), data center revenue for the quarter at $51.2 billion (up 66% YoY). The CEO stated that Blackwell and Rubin chips are expected to generate $500 billion in revenue by the end of 2026—this means a projected revenue of $378 billion next year, a year-on-year increase of 78%.

Why is Palantir rising? Simply put, Nvidia's earnings report has dispelled concerns about a slowdown in AI demand. Palantir primarily benefits from the AI boom, and its AIP platform has no real competitors. Now that the AI hype is confirmed to still be strong, the stock price naturally follows suit.

But here's the problem: Palantir's valuation is extremely high - 165 times next year's expected PE, 63 times PS. Any slowdown in AI adoption or failure to deliver on its own could cause this stock to plummet. The favourable information from the financial report is just a temporary reassurance; investment still needs to be cautious.

In short: the short-term Favourable Information sentiment is positive, but in the long term, it depends on whether one can hold this valuation.