In 2024, Nvidia’s revenue soared to $130.5 billion, with AI-driven data center sales accounting for nearly 80% of its growth, reflecting a 93% year-over-year increase. Its CUDA software ecosystem further cements its dominance, creating a high barrier to entry for competitors like AMD or Intel.

Year to date, Nvidia ( NVDA 1.69%) stock has returned 2%, while Palantir Technologies ( PLTR 0.20%) stock has advanced 72%. But forecasts from Wall Street analysts suggest that investors should buy one and sell the other.

U.S. stock indexes closed higher on Tuesday, helped by gains in Nvidia and other chipmakers, as investors awaited possible negotiations between the United States and its trading partners for more clarity on Washington's tariff plans.