AI Earnings Roundup: NVIDIA & Palantir

The 2025 Q3 earnings cycle continues to chug along, with the vast majority of S&P 500 companies already delivering results. The period has so far been one of resilience, with overall growth remaining strong and an above-average number of companies exceeding quarterly expectations.So far, several companies closely involved in the AI frenzy – Palantir PLTR and NVIDIA NVDA – have posted massive growth, with demand remaining red-hot. Let’s take a closer look at the releases.Another Historic Period for NVDANVIDIA posted a double-beat relative to our consensus expectations, with sales of $57 million growing 62% alongside a 67% jump in EPS. Unsurprisingly, it reflected a record-setting release yet again, with both overall and Data Center sales breaking previous records.And concerning the Data Center, revenue of $51.2 billion grew 66% from the year-ago period, also crushing our consensus estimate of $49.1 billion.Below is a chart illustrating NVDA’s Data Center revenue on a quarterly basis.Image Source: Zacks Investment ResearchA favorable outlook remains for the AI poster-child following the release, with analysts continuing to revise their EPS expectations higher across the board. The stock sports the highly coveted Zacks Rank #1 (Strong Buy).Image Source: Zacks Investment ResearchNotably, shares aren’t expensive on a historical basis, with the current 29.1X forward 12-month earnings multiple well below the five-year median and steep five-year highs of 106.3X. It’s worth noting that NVDA shares traded well above current valuation levels in 2020 and 2021, a period when the AI theme had yet to fully emerge and when shares were primarily driven by its gaming results.PLTR Breaks Records Regarding Palantir’s results, quarterly sales of $1.2 billion set another record, up a sizable 63% from the year-ago period. Growth was broad-based, with US commercial revenue surging 121% YoY and US government revenue shooting 52% higher.PLTR inked many lucrative deals throughout the period, closing more than 200 deals worth at least $1 million, 91 worth at least $5 million, and 53 deals worth at least $10 million. It closed a record-setting $2.8 billion of Total Contract Value (TCV) overall, up a staggering 340% from the same period last year.And for the cherry on top, Customer count grew by a massive 45% YoY. It goes without saying that the company has continued to witness extremely hot momentum, underpinned by a rapidly growing customer base. This is further reflected in the chart below, which tracks the company's YoY % change in sales. Please note that these are not actual sales numbers, rather the YoY % growth rates. Image Source: Zacks Investment ResearchTo top off the robust results, Palantir provided its highest sequential quarterly revenue growth guide in its history for its Q4 (61% growth expected), while also increasing its current year sales, adjusted operating income, and adjusted free cash flow guidance.The stock sports a favorable Zacks Rank #2 (Buy), with EPS expectations rising across the board.Image Source: Zacks Investment ResearchBottom LineThe 2025 Q3 earnings season has been one of strength, with growth remaining strong and a nice number of companies exceeding expectations.And concerning AI earnings, both NVIDIA NVDA and Palantir PLTR crushed it, both reporting big growth and seeing positive EPS revisions post-earnings.Free Report: Profiting from the 2nd Wave of AI ExplosionThe next phase of the AI explosion is poised to create significant wealth for investors, especially those who get in early. It will add literally trillion of dollars to the economy and revolutionize nearly every part of our lives.Investors who bought shares like Nvidia at the right time have had a shot at huge gains.But the rocket ride in the "first wave" of AI stocks may soon come to an end. The sharp upward trajectory of these stocks will begin to level off, leaving exponential growth to a new wave of cutting-edge companies.Zacks' AI Boom 2.0: The Second Wave report reveals 4 under-the-radar companies that may soon be shining stars of AI’s next leap forward.Access AI Boom 2.0 now, absolutely free >>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 NVIDIA Corporation (NVDA): Free Stock Analysis Report Palantir Technologies Inc. (PLTR): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks