The Zacks Analyst Blog NVIDIA, Palantir, Microsoft, Intel and Advanced Micro Devices

For Immediate ReleasesChicago, IL – January 23, 2025 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include, NVIDIA Corp. NVDA, Palantir Technologies Inc. PLTR, Microsoft Corp. MSFT Intel Corp. INTC and Advanced Micro Devices, Inc. AMD.  Here are highlights from Thursday’s Analyst Blog:2 AI Stocks to Buy for Potential 2025 Gains: NVIDIA & Palantir Companies were trialing with artificial intelligence (AI) in 2023, adopted the technology in 2024, and are now gearing up for disruptive changes in their AI operations.President Trump also rolled out a significant AI infrastructure investment exceeding $500 billion, a shot in the arm for the leading tech players. The market size for AI worldwide, meanwhile, is estimated to reach $243.7 billion this year from $184.1 billion last year, per statista.com.Banking on such positives, the future looks brighter for AI stocks. Two standouts in the S&P 500 last year were NVIDIA Corp.  and Palantir Technologies Inc., poised for strong performance again this year, making them enticing buys. Let’s see why –The Bullish Case for NVDA StockNVIDIA’s dominance in the graphic processing units (GPU) market has given the AI behemoth a competitive advantage. NVIDIA accounts for more than two-thirds of the GPU market, which is projected to grow to $101.54 billion this year from $75.77 billion last year, according to Precedence Research.The growing acceptability of NVIDIA’s chips also stands in good stead for the company. The demand for NVIDIA’s next-generation Blackwell chips is surging, while the demand for Hopper chips remains steady, confirmed CEO Jensen Huang.NVIDIA’s older and newer chips continue to gain customers’ confidence due to their superior quality compared to competitors Intel Corp. and Advanced Micro Devices, Inc. The Blackwell chip, in particular, can run AI inference at a 30 times faster pace compared to the older chips and has seen a significant rise in shipments in the current quarter. The Blackwell chips are also 25 times more energy efficient, which does lower costs.Due to the growing demand for Blackwell chips, it is expected that NVIDIA will continue to witness a healthy increase in quarterly profits despite considerable gains last year. Therefore, NVDA’s earnings per share (EPS) are projected to increase by 46.3% from last year. The Zacks Consensus Estimate is $2.94.The Bullish Case for PLTR StockIn the AI platform software market, Palantir has the second-biggest share behind Microsoft Corp. With spending on AI platforms set to increase substantially through 2028, Palantir is well-poised for strong growth.Palantir has also seen its government and commercial customer base increase last year due to the immense demand for its AI platform, called Artificial Intelligence Platform (AIP). This AI platform can automate tasks by integrating AI agents that humans can’t do.The demand for AIP increased Palantir’s revenues from both the government and commercial sectors in the last reported quarter. At the same time, Palantir’s net-dollar retention rate improved in the last reported quarter.Above all, Palantir may have connected well with its government clients but has more potential to expand its reach among commercial clients in the United States, indicating room for further growth. As a result, the $0.38 Zacks Consensus Estimate for PLTR’s EPS is up 31% from a year ago.NVIDIA & Palantir Are Must-Buy Stocks for 2025To conclude, NVIDIA’s GPU market dominance and high demand for AI chips will help its shares keep scaling upward this year. Similarly, the growing commercial customer base and solid demand for AIP provide Palantir’s shares massive room for growth in the current year.Thus, astute investors should bet on both stocks to maximize their growth potential. Both NVIDIA and Palantir have a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.Why Haven't You Looked at Zacks' Top Stocks?Since 2000, our top stock-picking strategies have blown away the S&P's +7.0 average gain per year. Amazingly, they soared with average gains of +44.9%, +48.4% and +55.2% per year.Today you can access their live picks without cost or obligation.See Stocks Free >>Note: Sheraz Mian heads the Zacks Equity Research department and is a well-regarded expert of aggregate earnings. He is frequently quoted in the print and electronic media and publishes the weekly Earnings Trends and Earnings Previewreports. If you want an email notification each time Sheraz publishes a new article, please click here>>>Media ContactZacks Investment Research800-767-3771 ext. 9339support@zacks.com                                     https://www.zacks.com                                                Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance  for information about the performance numbers displayed in this press release.7 Best Stocks for the Next 30 DaysJust released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."Since 1988, the full list has beaten the market more than 2X over with an average gain of +24.1% per year. So be sure to give these hand picked 7 your immediate attention. See them now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Intel Corporation (INTC): Free Stock Analysis Report Advanced Micro Devices, Inc. (AMD): Free Stock Analysis Report Microsoft Corporation (MSFT): Free Stock Analysis Report NVIDIA Corporation (NVDA): Free Stock Analysis Report Palantir Technologies Inc. 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