Key Points
Undoubtedly, tech stocks are driving today’s stock market. The growth in artificial intelligence, machine learning, cloud computing, and automation makes tech stocks the most powerful and dynamic in the market. That’s why the tech-heavy Nasdaq Composite, with its 28% gain in the last 12 months, is easily outperforming other indexes, the Dow Jones Industrial Average and the S&P 500.
While tech stocks come in all sizes and flavors, two that I think are no-brainer buys right now are some of the most extraordinary in the market: Palantir Technologies (NASDAQ: PLTR) and Nvidia (NASDAQ: NVDA).
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Palantir Technologies
No stock is soaring as high as Palantir. Formerly best known as a government contractor, Palantir is using its Artificial Intelligence Platform (AIP) to revolutionize how both government and commercial businesses operate.
The difference-maker for Palantir is that it’s built massive platforms that pull information from countless places to help users make real-time decisions. This is incredibly important for battlefield situations, which is why Palantir has been a valuable military contractor for years. Its platform helps users figure out where enemy and allied resources are located, how to best position troops, predict the results of operations, and make recommendations while operations are in motion.
AIP makes this platform even easier to use — users type in detailed queries, and using the power of generative AI, Palantir is able to quickly and clearly come up with a recommendation or analysis. That’s why the Trump administration is greatly expanding Palantir’s work beyond the military — it’s now being used by the State Department, the Federal Aviation Administration, Homeland Security, and the Centers for Disease Control and Prevention.
AIP is also making Palantir a favored company for commercial clients, who are now using Palantir’s platform to manage hospital records and equipment, manage supply chains, and more.
Palantir, which is up 500% in the last year alone, recorded the first quarter of $1 billion in revenue in company history — growing 48% from a year ago. U.S. commercial revenue was up 93%, reaching $306 million. U.S. government revenue jumped 53% and came in at $426 million.
Nvidia
Nvidia isn’t growing as fast as Palantir, but its growth is just as notable. The company’s stock is up 73% in the last 12 months as the company has achieved a market capitalization of $4.4 trillion. On July 9, it became the first company in the world to reach a market cap of $4 trillion, and I think there’s a very good chance that it will crack the $5 trillion mark before the end of the year.
There are a few major catalysts. First, Nvidia’s graphics processing units (GPUs) are best-in-class for powering data centers where companies are building and running their generative AI applications and large language models. Nvidia’s chips are designed to work in tandem, so by clustering hundreds of them, companies are able to work faster, personalize customer experiences, and improve customer service. Jon Peddie Research estimates that Nvidia’s GPUs have roughly 92% of the market space.
Second, Nvidia’s earnings report for its fiscal second quarter of 2026 (ended July 27, 2025) will be after the closing bell on Aug. 27. Cloud computing companies like Microsoft, Meta Platforms, and Alphabet have already announced plans to increase spending to add to their data centers — and that Nvidia is the beneficiary for that business. Nvidia is well on the way to yet another blowout quarter, and will surely be calculating the hyperscalers’ spending plans in its upcoming guidance. I’m looking for Nvidia stock to spike after the earnings report.
And finally, the White House just announced a deal with Nvidia and its rival, Advanced Micro Devices, that would allow the companies to sell advanced AI chips in China in exchange for 15% of the revenue from those sales. Nvidia, which has not made an announcement about the deal, has been blocked in its efforts to sell its H20 AI chip in China, but this deal opens the Chinese market.
While it’s unclear how the deal will be received in Beijing or by U.S. courts, it represents a potentially massive opportunity for Nvidia. The company said it incurred a $4.5 billion charge in the first quarter by not being able to sell the H20 chips in China, so a deal such as this would allow Nvidia to potentially recoup that revenue.
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Patrick Sanders has positions in Nvidia and Palantir Technologies. The Motley Fool has positions in and recommends Advanced Micro Devices, Alphabet, Amazon, Meta Platforms, Microsoft, Nvidia, and Palantir Technologies. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.