Palantir Stock Ascends in After-Hours Trading on the Back of Nvidia's Strong Earnings

Palantir Technologies Inc, known by its ticker PLTR, experienced an uptick in its share value during Wednesday's after-hours trading period. This movement is largely attributed to the impressive earnings disclosed by Nvidia Corp (NVDA), which surpassed market expectations.

Understanding Nvidia's Impact

Nvidia recently released its quarterly financial figures, exhibiting a substantial fourth-quarter revenue of $22.1 billion. This figure not only eclipses the anticipated consensus of $20.62 billion but also showcases a significant earnings per share achievement of $5.16, over the $4.64 estimate.

The breakdown of Nvidia's revenue sources indicates a dramatic 409% jump in data center revenue, a 56% increase in gaming revenue, and a 105% rise in professional visualization revenue. However, automotive revenue saw a slight 4% dip from the previous year.

Furthermore, Nvidia's forecast for fiscal year 2025 is set at around $24 billion, with a 2% margin of error, which is optimistic compared to the $22.16 billion market estimate.

Jensen Huang, the founder and CEO of Nvidia, commented on the situation stating, 'Accelerated computing and generative AI have hit the tipping point. Demand is surging worldwide across companies, industries, and nations.' He expressed buoyant expectations for the coming year, hinting at major new product cycles filled with significant innovations.

Palantir's Symbiotic Success

Palantir, along with Nvidia, has been capitalizing on the booming demand for AI technology. Early February saw Palantir report its own quarterly results, confirming a strong demand for its AI solutions.

The positive earnings news from Nvidia also seems to have had a halo effect on other AI-centric companies such as C3.Ai Inc, SoundHound AI Inc, and BigBear.Ai Inc, as well as various chipmakers.

Nvidia drew attention earlier in the month following a 13-F filing with the SEC, which highlighted investments in companies like Arm Holdings, Recursion Pharmaceuticals, and SoundHound AI. These companies, as well, have shown positive momentum following Nvidia's earnings release.

Palantir's Market Movement

With recent developments, Palantir shares have seen a gain of 3.96% in the after-hours trading session, as reported by market resources, with a price reaching $23.64, signaling investor confidence following the tech earnings.

Palantir, Nvidia, Earnings