At the time of writing, the S&P 500 Index (SP: .INX) is up 17% and the Nasdaq Composite Index (NASDAQ: .IXIC) is up 21% for 2025.

Meanwhile, the ASX 200 is up 6%.

Many Australian investors, particularly younger generations, own US stocks via broad-based exchange-traded funds (ETFs).

However, some investors still prefer to buy US shares directly in the hope of outsized returns.

Investment platform Stake has revealed the top five most traded US stocks by its Australian customers in calendar year 2025.

Let's take a look.

Most traded US stocks of the year

1. NVIDIA Corp (NASDAQ: NVDA)

The Nvidia share price closed at $187.54 overnight and has risen 40% in 2025.

According to Stake's 2025 Retail Investor Report Card:

Nvidia officially became the world's largest company this year – its market cap reaching a peak US$4.93T in November.

Despite landing in the short-seller crosshairs of Michael Burry, the firm proved AI demand isn't going anywhere.

It beat revenue estimates every quarter in 2025 by an average of 8.9% and is on track to generate US$212B in FY26.

Its earnings have become a global market catalyst: Nvidia's results serve as a directional signal for traders worldwide.

For Stake investors, the biggest 'buy-the-dip' moment came during the DeepSeek moment in January, when Nvidia lost US$260B in market cap but buy orders surged 460%.

2. Tesla Inc (NASDAQ: TSLA) 

The Tesla share price closed at $454.24, up 12.5% over the year.

Stake analysts summed up Tesla's performance in 2025:

Tesla shares managed a [12.5%] YTD gain despite declining sales, margin compression, and intensifying competition from Chinese EV makers like BYD. It was the only member of the elite Mag7 group to not hit a record high this year.

Investors who are still bullish are banking on Tesla's autonomous driving or 'robotaxi' tech and future-oriented business lines.

Another bright spot for its balance sheet was its energy and storage revenue, which hit US$3.41B in Q3 with a 31.4% gross margin.

The biggest day of $TSLA buying on Stake was 5 June, amid a very public feud between CEO Elon Musk and President Trump over a Republican budget bill eliminating EV tax credits.

3. Palantir Technologies Inc (NASDAQ: PLTR)

This US artificial intelligence stock rode the wave of rising global defence spending in 2025.

The defence software developer closed at $180.84 per share overnight, up 139% in 2025.

Stake analysts said:

Palantir has been one of the best performing stocks in 2025, recording a 140% YTD gain on the back of record earnings and major government contracts. It landed a US$10B software contract with the U.S. Army alongside multi-year deals with AI enterprise clients.

CEO Alax Karp swiped at critics who called him 'batshit crazy' in an earnings call where the firm raised full-year guidance.

But the short sellers are circling: on 18 Aug, Citron Research said a US$40 share price would be generous for $PLTR, effectively implying its trading 80% higher than fair value.

It was also the day Stake traders bought the most $PLTR this year.

4. Amazon.com Inc (NASDAQ: AMZN)

The Amazon share price closed at $232.53 overnight, up 6% this year.

Stake analysts commented:

Amazon hasn't seen the most significant share price growth in 2025, trailing the S&P 500 and the Nasdaq. That didn't stop investors from trading large volumes of this stock, particularly during moments of turbulence following the Liberation Day tariff announcements.

Despite the high capex spend on AI infrastructure, its high-margin AWS segment grew 20% YoY to US$33B in Q3.

AWS and advertising growth make Amazon's future less dependent on traditional retail cycles, but more reliant on cloud and AI demand.

5. Advanced Micro Devices Inc (NASDAQ: AMD)

US semiconductor stock, Advanced Micro Devices, closed at $215.34 apiece overnight, up 78% this year.

According to Stake's report:

AMD saw multiple re-ratings from analysts this year as it transitioned from being seen as a CPU/GPU maker for PCs to a major player in AI and data centre infrastructure.

The turning point might have been its multi-year strategic partnership with OpenAI, leading to a 30% rally – its best day since 2016.

Stake investors took the opportunity to lock in profits, with the 6 October seeing the largest sell volume on record.

AMD has also been eating away at Intel's x86-based chip market share. It accounts for 30% of that market, providing demand for its CPUs is still strong in a year where CEO Lisa Su claimed its AI chips can match Nvidia's performance.

The post 5 most traded US stocks by Aussie investors this year appeared first on The Motley Fool Australia.

The stock market hasn't been the same since OpenAI unleashed ChatGPT to the public three years ago. As of Dec. 4, the S&P 500 (SNPINDEX: ^GSPC) market index has posted a 75% total return since then. The tech-heavy Nasdaq-100 index gained a dividend-adjusted 118% over the same period.

But the kings of artificial intelligence (AI) are soaring far above these not-so-pedestrian returns. AI chip champion Nvidia (NASDAQ: NVDA) is up more than tenfold and AI platform master Palantir Technologies (NASDAQ: PLTR) more than doubled Nvidia's stellar gains:

PLTR Total Return Level data by YCharts

But past performance is never a guarantee of future results. What matters to today's investors is a fundamentally different question -- which AI stock is the better investment for new money today?

When AI valuations go orbital

Let's address the elephant in the room, or the rocket ship in the stratosphere directly above Wall Street. Palantir's stock has gone absolutely parabolic in 2025, trading at roughly 109 times trailing revenue. That triple-digit figure is not a typo. For context, even during the dot-com bubble's wildest moments, most high-flyers topped out around 50 times sales.

Nvidia, meanwhile, has seen its valuation actually compress even as its business keeps breaking records. At about 24 times revenue, it's still priced for perfection. However, compared to Palantir, Nvidia's stock price looks almost reasonable.

Mind you, Nvidia is already absolutely massive and it should be harder to keep the hypergrowth going from an annual revenue base of $187 billion. Palantir's trailing-12-month sales look minuscule in comparison, stopping at $3.9 billion. The law of large numbers says that Nvidia's sales growth must slow down at some point. Meanwhile, Palantir's long-term value is limited by its focus on the smaller market of government contracts. The company is pushing into commercial contracts too, but how many businesses need military-style data analytics?

The political cycle wild card

Palantir's recent surge coincides suspiciously with a favorable shift in the federal spending environment. The company's government revenue, while growing at a respectable 40% year over year, suddenly seems poised for acceleration as Washington embraces AI-powered defense and intelligence applications.

But here's the risk nobody's talking about: government contracts follow political cycles. What happens if spending priorities shift after the 2026 midterms? What if the regulatory environment becomes less friendly to aggressive data analytics? Palantir's commercial business is growing faster at 54%, but government contracts still represent nearly half of revenue. That's a lot of exposure to political winds that can change direction every two years (with sharper shifts around the four-year presidential election cycle).

Nvidia faces its own unique challenge -- its biggest customers are becoming its biggest competitors. Amazon, Alphabet, and Microsoft are all developing custom AI chips while still buying billions worth of Nvidia's GPUs. It's like selling weapons to armies that are simultaneously building their own armories. Nvidia can maintain this delicate balance, but it requires constant innovation and careful relationship management.

"Less overvalued" wins by default

I can't believe I'm writing this, but at current prices, Nvidia is the better buy -- and that's despite my concerns about customer competition and a still-rich valuation. Here's why:

• Valuation sanity: OK, "sanity" is a stretch but at 24x sales vs. 109x, Nvidia's premium is at least loosely grounded in financial reality.
• Proven moat: CUDA's ecosystem lock-in is real and tested, while Palantir's competitive advantages remain harder to quantify.
• Diversification: Nvidia sells to everyone in AI; Palantir's concentration in government and large enterprises limits its addressable target market.
• Profit machine: Nvidia's 57% net margin vs. Palantir's 20% shows who's actually printing money today.

But here's the real takeaway: Both stocks are priced for a perfect AI future that may not materialize as smoothly as bulls expect. Palantir needs flawless execution and continued government AI spending to justify its valuation. Nvidia needs to fend off increasingly capable competitors while maintaining its innovation edge. Both might actually succeed in the long run, but it won't be easy. 

For investors seeking AI exposure today, the smartest move might be looking elsewhere in the ecosystem -- perhaps at the hyperscalers building AI services, semiconductor equipment makers enabling the whole industry, or even "boring" companies successfully implementing AI to improve their operations. Sometimes the best investment isn't choosing between two expensive options -- but finding a completely different third path.

So, if forced to pick between these two AI titans, I'd reluctantly choose Nvidia. But I reduced my Nvidia exposure in 2025, converting some of my AI-boom paper gains into cash profits.

My highest-conviction call in this duel is simple: Neither stock really offers a compelling risk/reward balance for new money at December 2025 prices. The AI revolution is real, but that doesn't mean every AI stock is a buy at any price.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Better artificial intelligence stock: Palantir Technologies vs. Nvidia appeared first on The Motley Fool Australia.

Warren Buffett and Michael Burry are two of the most famous investors in modern history. While both have amassed enormous wealth, they share little in common when it comes to their respective investment strategies.

This dichotomy is on full display at the moment, as recent 13F filings reveal that Burry is shorting artificial intelligence (AI) stocks Nvidia (NASDAQ: NVDA) and Palantir Technologies (NASDAQ: PLTR), while Buffett just plowed more than $4 billion into Alphabet (NASDAQ: GOOGL) (NASDAQ: GOOG).

Let's break down the underlying features of their latest moves in an attempt to assess which billionaire made the right choice, and to answer the question: Should you buy or sell AI stocks right now? 

Michael Burry's latest big short

In simple terms, when an investor shorts a stock, they are betting that its price will decrease. One common way to construct a short trade is to buy put options on the stock you're bearish about.

According to the most recent 13F filing from Scion Asset Management, the hedge fund Burry manages, during the third quarter, it purchased 5 million shares worth of put options for Palantir and 1 million put options for Nvidia. In total, these contracts are worth roughly $1.1 billion.

In my view, there are two primary reasons Burry went short on those stocks in particular.

With Palantir, Burry's concern is likely its lofty valuation. As of Nov. 19, Palantir sported a price-to-sales (P/S) ratio of 107. Not only is this a hefty premium for the software sector, but it is also historically high when benchmarked against prior technology megatrends.

For instance, during the height of the dot-com bubble, the P/S ratios of internet pioneers such as Microsoft, Cisco, and Amazon peaked in the range of 30 to 50. Given how much further Palantir's valuation has climbed beyond those excessive levels, it could be argued that the data analytics specialist is due for a pullback. Its current valuation appears unsustainable.

With Nvidia, Burry's concerns are tied to a more subtle detail. The chipmaker is the market leader in graphics processing units (GPUs), advanced parallel processors that are widely used to develop and power generative AI applications.

Over the last few years, hyperscalers have laid out hundreds of billions of dollars to buy as many of Nvidia's GPUs as possible. Where things become more complicated is how all this hardware is being accounted for on paper.

Let's say a company expects the GPUs it buys to have a useful life of five years. If it spent $1 billion in a given year to procure these chips, then the business would generally depreciate this purchase ratably -- in five annual installments of $200 million -- over that estimated useful life. Because depreciation is treated on the books as an expense, that theoretical depreciation figure of $200 million will cut into the company’s reported earnings each year. This lowers its bottom-line figure for that year accordingly.

In reality, however, Nvidia has been releasing new chip architectures every other year since before the AI revolution kicked off, and in 2024, it accelerated its pace to an annual cadence. Against this backdrop, the true product life cycle of its GPUs might be only two or three years.

For now, though, with companies depreciating these expenses over longer horizons -- five or six years, in some cases -- they reduce the size of the annual expenses they have to report relative to depreciation, which makes their profits appear higher.

Burry is essentially accusing Nvidia and its customers of accounting fraud supported by artificially inflated profit margins.

The one magnificent stock Buffett just bought

During the third quarter, the only stock that Buffett and his portfolio managers added to Berkshire Hathaway's portfolio was Alphabet.

This was an interesting move, as Buffett had been trimming technology positions such as Apple for more than a year. Moreover, Berkshire has kept its stock purchases fairly muted recently, so its sales left it with a record cash stockpile.

In Q3, for the first time since the AI revolution began, the Oracle of Omaha finally decided to partake. Adding to the curiosity, Alphabet arguably sits at the intersection of Burry's two concerns -- valuation and accounting gimmicks.

On the valuation side, Buffett is notorious for not chasing hype or paying premium prices for investments. Given that the S&P 500's Shiller CAPE ratio level of 40 is dangerously close to levels last seen during the dot-com bubble, a solid argument could be made that the market isn't just frothy -- it's overvalued. And AI stocks are the largest contributors to that condition.

S&P 500 Shiller CAPE Ratio data by YCharts.

Even so, Alphabet trades at a forward price to earnings (P/E) multiple of 28 -- the second-lowest among the "Magnificent Seven." With that in mind, shares of Alphabet could be seen as somewhat of a value play relative to the rest of its cohort.

When it comes to the accounting issues, I don't think Buffett is too concerned. He's a high-level thinker. What I mean by that is Buffett made his fortune investing in durable businesses that generate consistent profits and reward shareholders through dividends and stock buyback programs.

In other words, Buffett does not appear to be overly analytical when it comes to the specifics of a company's generally accepted accounting principles (GAAP) financial reporting. The team at Berkshire is likely well aware of the accounting mechanisms employed by big tech, and it's more than able to adjust its own models to perform what it views as accurate forecasting.

The verdict: Buffett and Burry have different mindsets

At the end of the day, Buffett and Burry are taking different approaches to the AI trade.

While both are contrarian investors, Burry should be thought of as a trader -- he looks to identify anomalies or momentum opportunities that he can capitalize on. By contrast, Buffett invests for longer periods in businesses that have brand recognition and diverse ecosystems.

As a long-term investor, I am more inclined to follow Buffett's playbook. Choosing companies to buy and hold forever is a proven, time-tested approach to compounding wealth.

While Burry may mint some short-term profits by betting against the AI pure plays, I think Buffett is better positioned for long-term gains. 

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Warren Buffett is buying artificial intelligence (AI) stocks while Michael Burry is shorting them — Who's right? appeared first on The Motley Fool Australia.

To recap, the Mag 7 shares are Nvidia Corp (NASDAQ: NVDA), Apple Inc (NASDAQ: AAPL), Microsoft Corp (NASDAQ: MSFT), Amazon.com, Inc. (NASDAQ: AMZN), Alphabet Inc Class A (NASDAQ: GOOGL), Alphabet Inc Class C (NASDAQ: GOOG),  Meta Platforms Inc (NASDAQ: META), and Tesla Inc (NASDAQ: TSLA).

Betashares investment strategist, Hugh Lam, says the Mag 7 stocks have delivered exceptional returns for investors since AI became a dominant market theme following the launch of ChatGPT in November 2022.

Since then, the S&P 500 Index (SP: INX) has gained 70% in value, with the Mag 7 responsible for more than half that, Lam said.

However, there are other options for investors who think the Mag 7 stocks are now overvalued.

Let's find out more.

AI investment goes beyond the Mag 7 stocks

In an article, Lam said AI was here to stay, and there were many companies besides the Mag 7 set to benefit.

Lam commented:

From its potential to enable long-term productivity gains to becoming a geopolitical bargaining chip among the world's economic powerhouses, the market's fervour for AI looks here to stay.

However, the investment opportunity set is now broader than the Mag 7, with many other firms likely to thrive as AI technologies proliferate and data centre capacity grows.

Lam points out that the Mag 7 are critical in the AI infrastructure build-out, whilst other companies are using AI to enhance their services.

Examples include Palantir Technologies Inc (NASDAQ: PLTR), a US-based AI and defence software company specialising in data analytics for government and defence industry customers.

The Palantir share price has rocketed 115% in 2025 amid its software systems being adopted in US military operations and businesses such as Walmart Inc (NYSE: WMT) and Airbus SE (ETR: AIR).

Cybersecurity and robotics

Lam said the benefits of AI are now being seen in adjacent sectors to information technology, such as cybersecurity and robotics.

The investment strategist said:

… AI is reshaping the cybersecurity industry, particularly as geopolitical tensions continue to simmer and national self-sufficiency needs rise.

Against this backdrop, governments, businesses and individuals are all becoming more proactive in protecting their data.

Global cybersecurity spending is expected to see sustained growth of double-digit rates, reaching US$377 billion by 2028, according to the International Data Corporation.

This amount is not only large but also highly defensible in nature, with Chief Information Officers surveyed by Morgan Stanley viewing security as the category least likely to get cut in an economic downturn.

Lam says robotics has become a key theme in 2025, describing it as Nvidia's next biggest market for potential growth.

While still in its infancy, Betashares sees robotics becoming a bigger and more recognised investment exposure over time as developed market economies seek automation as a critical solution to counter structural macro issues including labour shortages and falling population growth rates.

The post How to invest in AI outside the Magnificent 7 stocks appeared first on The Motley Fool Australia.

Palantir (NASDAQ: PLTR) has been one of the best-performing stocks since the artificial intelligence (AI) arms race began in 2023. There really hasn't been a bad time to buy the stock over the past three years, with it rising an astounding 2,670% since 2023. Now Palantir has announced a partnership with the largest company in the world, Nvidia.

Is this partnership a game changer for Palantir? Or is it just something that had to be done to justify its current stock price? Let's dive in and see if this has the potential to ignite another run-up on Palantir's stock. 

Palantir's platform is seeing widespread adoption

Originally, Palantir started as a software platform for government use only. It would take in multiple data streams, use AI to make sense of the information, and offer real-time suggestions. Eventually, this product expanded onto the commercial side of things, where it is seeing massive success. Palantir has also pivoted toward the generative AI trend, as it has a platform that allows AI agents to be integrated into workflows.

All of these workloads have to be run on some device, and the leading AI computing units are Nvidia's graphics processing units (GPUs). With Palantir's platform on Nvidia's products, anyone looking to increase their AI edge by adopting Palantir's platform can deploy the workload on Nvidia's GPUs and have access to pre-created libraries and other models to optimize performance. Prospective clients wouldn't need to spend as many resources on deploying Palantir's software with these prebuilt solutions, potentially making Palantir's offering more attractive.

Is this a game changer for Palantir? Likely not. The companies that were going to adopt its product were likely unswayed by this, but it doesn't hurt. I'm doubtful that this would convince companies that weren't thinking about deploying Palatnir's software to change their mind as well. I think this partnership is just something Palantir needed to do to optimize its offering, rather than boost growth. It's not like Palantir needs help in the growth department.

Palantir was delivering impressive growth even without the Nvidia partnership

The Nvidia and Palantir partnership was announced in late October, so Palantir's Q3 results were unaffected by this announcement. During Q3, Palantir posted an impressive 63% revenue growth rate to $1.2 billion. It also turned a jaw-dropping 40% of that revenue into net income.

Few can find fault with those results, but that's not the issue that most investors focus on with Palantir's stock.

The biggest issue most investors (including myself) have with Palantir is its valuation. Palantir's stock is one of the most expensive on the market, trading for an incredible 117 times sales and 181 times 2026 earnings.

PLTR PE Ratio (Forward 1y) data by YCharts

This makes Palantir one of the most expensive stocks in the market. Furthermore, comparing it to a company like Nvidia (which is growing at about the same rate) gets investors worried about Palantir's future performance.

NVDA PE Ratio (Forward 1y) data by YCharts

For this valuation to make sense, Palantir must continue growing its U.S. commercial client count, and its growth appears to be slowing a bit. During Q3, Palantir's U.S. commercial customer count rose 9% quarter over quarter to 530. That leaves a ton of room for more customers, but the growth rate fell from 12% in the previous quarter, down from 13% and 19% before that. If growth continues to moderate, Palantir could have a difficult time living up to expectations, and the Nvidia partnership isn't likely to bring in any new sales.

By partnering with Nvidia to optimize running on its hardware, it may allow Palantir to capture a few more customers, but time will tell if that pans out.

Plantir is still an impressive and successful company, but the expectations baked in are far too great. Even a partnership with Nvidia likely won't change that, and I think investors are better off investing in Nvidia than Palantir.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Is Palantir's deal with Nvidia a game changer? appeared first on The Motley Fool Australia.

Palantir Technologies (NASDAQ: PLTR) and Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) both have been benefiting from the artificial intelligence (AI) boom in recent quarters. Palantir sells AI-driven software that helps customers make better use of their data. And Alphabet uses AI to improve its Google Search platform and sells AI products and services to customers of its Google Cloud business.

All of this has resulted in earnings growth and stock performance for both companies over the past few years. But now, even as the AI boom marches on, Wall Street expects only one of these stocks to climb in the coming 12 months and has an overwhelming number of buy recommendations on this player. Meanwhile, Wall Street predicts the other stock will fall. Let's take a closer look at each of these AI powerhouses and find out which one Wall Street favors right now. 

Palantir Technologies

Palantir may seem like an overnight success, as the stock has soared more than 2,000% in just three years, but this company actually has been around for more than 20 years. In its early days, Palantir depended on government contracts for growth, but the release of its AI-driven software system -- known as Artificial Intelligence Platform (AIP) -- a couple of years ago supercharged the growth of another customer. The commercial one.

Today, businesses and organizations are flocking to Palantir for AIP, and as a result, total commercial revenue has surpassed U.S. government revenue for four straight quarters. But this doesn't mean government business is slipping – instead, Palantir now is generating double-digit growth from both commercial and government businesses, and demand has prompted the company to lift annual forecasts across the board, from revenue to adjusted income from operations. Finally, Palantir has expertly balanced growth and profitability, suggesting we may expect a healthy earnings picture as this story progresses.

Amid this growth, however, Wall Street doesn't advise buying Palantir stock right now -- most analysts have a "hold" recommendation on the shares. And the average price forecast calls for a decline of a little more than 4% over the coming 12 months.

Alphabet

Alphabet is most known for its ownership of Google Search, the world's most popular search engine -- it holds more than 90% of this market, and that's helped advertising across the Google platform power Alphabet's earnings over time. Advertising makes up most of the company's revenue, but in recent quarters, AI has helped the Google Cloud business take off.

Customers have flocked to Google Cloud for AI infrastructure and tools, and the unit's revenue has soared. In the latest quarter, Google Cloud revenue climbed 34% to more than $15 billion. And this along with strong performance across the search business has pushed the company's overall revenue to a new milestone, surpassing $100 billion in a quarter for the first time. This is on top of a long-established track record of revenue and profit growth.

Analysts are overwhelmingly optimistic about Alphabet's potential over the coming 12 months, as we can see through their forecasts. Wall Street's average price estimate calls for an increase of about 6% for the stock, and most analysts have a "buy" or "strong buy" recommendation on the shares.

What does this mean for investors?

So, Wall Street clearly is cautious about Palantir -- and much of this has to do with the company's valuation. A look at it compared to that of Alphabet points to Alphabet as the better bargain today.

PLTR PE Ratio (Forward) data by YCharts

This doesn't necessarily mean that you should rush out and sell your Palantir shares or avoid the stock entirely, though. The company still has the earnings strength and market position to advance over the long term, but this high valuation may weigh on appetite for the stock in the near term. So Palantir is best left to aggressive growth investors right now, while Alphabet makes a solid buy for anyone seeking a potential AI winner.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Palantir stock vs. Alphabet stock: Wall Street says to buy only one appeared first on The Motley Fool Australia.

Michael Burry has proven his ability to identify a bubble. Back in the early 2000s, the hedge fund manager considered trends in the U.S. housing market unsustainable -- and decided to short this market, betting on a decline.

Amid the subprime mortgage crisis that unfolded, he collected more than $700 million for his clients thanks to that move. And Burry gained additional fame when Hollywood told the story in The Big Short a few years later.

Since that time, investors have closely watched Burry's moves, as they recognize his strength in spotting clues that may not be noticed by everyone. And as illustrated by his bet against the housing market, Burry isn't afraid to go against the crowd.

All this means that Burry's latest move -- concerning one of today's fastest-growing markets -- is likely to attract investors' attention. I'm talking about artificial intelligence (AI), a market forecast to grow from the billions now to more than $2 trillion by the end of the decade. Burry recently bet against two companies driving the AI boom. Does he know something Wall Street doesn't? 

Michael Burry's 13F

So, let's jump right in and consider this top investor's latest moves, shown in his 13F filing with the U.S. Securities and Exchange Commission. These are filings managers of more than $100 million in equities must submit on a quarterly basis -- and this is great for the rest of us investors, as it offers us a glimpse into the strategy of some of the world's most successful money managers.

In the third quarter, Burry bought $186 million in put options on Nvidia (NASDAQ: NVDA) and $912 million in put options on Palantir Technologies (NASDAQ: PLTR) for his Scion Asset Management portfolio, totaling a more than $1 billion bet against these AI giants. A put option, allowing the holder to sell a particular stock at a specific price at a future date, is a bet that the stock price will fall.

This move is striking because Nvidia and Palantir both have generated tremendous earnings growth in recent quarters, thanks to demand for their AI products and services, and are known as key companies in this AI revolution. Nvidia, selling the world's top-performing AI chip, dominates that market, while Palantir offers software systems that allow customers to easily apply AI to their needs.

Palantir's explosive growth

In the third quarter, Palantir delivered double-digit gains in revenue and strong profitability and increased forecasts across the board for the full year. Nvidia is expected to release quarterly earnings later this month, but it's reported record revenue and high profitability on sales recently. Palantir's and Nvidia's stock performance has reflected this success, with the shares climbing 2,200% and 1,200%, respectively, over the past three years.

In spite of these bright earnings reports, though, Burry's third-quarter moves suggest he expects both Palantir and Nvidia stock prices to decline. So, we might wonder: Does Burry know something Wall Street doesn't?

Is an AI bubble forming?

In recent weeks, investors have debated whether a bubble is forming or has formed in the AI market, and that's even weighed on stock performance during certain trading sessions. But tech companies' earnings so far have been strong, and forecasts for growth ahead are encouraging -- so, even if we see some declines in the near term, the long-term picture remains bright. And this means investors could win by holding onto quality companies, such as Nvidia and Palantir, for the long haul.

As for Burry's bet, it's important to keep a couple of things in mind. He made this move in the third quarter, and we don't know if he's maintained it in recent weeks -- we also don't know if this bet is a short-term or long-term one.

And Burry -- like any investor -- isn't always right. Back in 2023, he posted "sell" on X, then a couple of months later said that he had been wrong.

So, what does this mean for investors? Burry's move doesn't mean you should sell or avoid all AI stocks. Instead, at this time as valuations overall have climbed, it's a great idea to maintain positions in stocks -- in AI or other industries -- with solid long-term stories, ones that could withstand potential near-term turbulence and still generate growth in the years to come. And at the same time, ensure that your portfolio is well diversified.

Whether Burry is right or not, these moves should help you manage any short-term headwinds -- and win over the long run. 

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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During this time, the S&P 500 Index (SP: .INX) has lifted 82% while the Nasdaq Composite Index (NASDAQ: .IXIC) has soared 127.5%.

Many Australian investors, particularly younger generations, opt for exposure to US shares through exchange-traded funds (ETFs).

But there is still a large cohort that invests in US shares directly, preferring to back individual companies in the hope of outsized returns.

Investment platform Stake has revealed the five most bought US shares among its customers during the second half of FY25.

We interviewed Kylie Purcell, a market analyst at Stake, to find out why Australian investors have so much faith in these particular stocks.

5 most popular US shares with Aussie investors

1. NVIDIA Corp (NASDAQ: NVDA)

The Nvidia share price closed at $206.88 overnight, up 2.17% for the session and up 52% over the past 12 months.

Purcell said Nvidia has become the face of the artificial intelligence (AI) boom.

She said:

Buy orders surged in January as Nvidia's stock swung wildly, first rallying ahead of CEO Jensen Huang's CES keynote and bullish analyst upgrades, then tumbling 19% after China's DeepSeek unveiled a cheaper AI model. 

The volatility in January was a drawcard for investors looking to buy the dip — we saw buy orders on Stake jump 170% in January from the previous month.

Another wave of buying hit in April as earnings confirmed soaring chip demand.

Since bottoming in April, NVDA's stock has rallied more than 110%.

2. Tesla Inc (NASDAQ: TSLA) 

The Tesla share price closed at $468.37, up 2.6% overnight and up 93% over the past 12 months.

Purcell describes 2025 as a volatile year for Tesla stock amid Elon Musk's short-lived stint with the Trump administration, a public spat with the President, and a sharp drop in global car sales.

From December to March, TSLA shed up to 50% of its value as sentiment towards Musk soured and market pressures mounted.

Despite the headlines and sell off, Australian investors stuck with TSLA.

Tesla remained one of the most popular buys on Stake throughout the downturn. That conviction has, for now at least, been rewarded – TSLA has rallied more than 100% since early March.

3. Palantir Technologies Inc (NASDAQ: PLTR)

Palantir is an AI and defence software company based in the US.

The company is benefitting from a massive increase in global defence spending and is a key holding in 3 defence-themed ASX ETFs.

The Palantir share price closed at $207.18 overnight, up 3.4% after reaching a new all-time intraday high of $207.52.

Palantir shares are up 400% over the past 12 months.

Purcell said Palantir is one of the standout AI success stories among US shares, alongside Nvidia.

She commented:

The stock has rallied more than 1,300% over the past five years, including a 280% gain in the last 12 months, making it a consistent favourite among Australian investors.

4. Apple Inc (NASDAQ: AAPL)

The Apple share price closed at $268.84 overnight, down 0.57% for the session and up 21% over the past year.

Purcell said the Apple share price has been impacted by a wave of policy swings and product hype this year.

The stock plunged in April after Trump's tariff announcement sparked fears of higher manufacturing costs, then rebounded when a 90-day tariff pause and stronger-than-expected earnings calmed markets.

In all that volatility, we saw buy orders jump over 200% in April from the month before as Australian investors sought to buy the dip and position for a rebound once trade tensions inevitably eased.

The company's growing AI integration plans and stable iPhone and Services revenue helped restore confidence.

For Aussie investors on Stake, Apple has remained a defensive way to play tech, with steady growth and less AI hype.

5. Amazon.com Inc (NASDAQ: AMZN)

The Amazon share price closed at $254 overnight, up 4% after reaching a new intraday record of $258.60.

Amazon shares are up 30% over the past 12 months.

Purcell said the introduction of US tariffs hit Amazon shares hard, given that the company is a seller of imported goods.

She noted a 20% peak fall in the Amazon share price between February and April as investors fretted over the impact of tariffs, particularly on Chinese goods.

While Amazon's decline was swift, its rebound in late April was just as sharp. As the stock turned, investor activity surged – with buy orders spiking in April.

Interestingly, buying activity on Stake was also elevated through February and March, even as the stock continued to slide – suggesting some investors were willing to back the long-term story through the noise.

Further reading

Curious to know the five most bought ASX shares among Stake customers in 2H FY25?

Or the five most bought ASX ETFs?

And given the remarkable three-year run for US shares, would you be brave enough to follow this expert's advice and short the market?  

The post Which US shares are most popular with Aussie investors, and why? appeared first on The Motley Fool Australia.

Over the past three years, Nvidia has evolved from a niche chip designer into the most valuable company in the world, propelled by the unprecedented boom in artificial intelligence (AI).

Its graphics processing units (GPUs), once used largely to improve the rendering of visuals in video games, now provide key computing power in applications ranging from data center training clusters to humanoid robotics to autonomous vehicles. With demand for its chips still far exceeding supply, Nvidia's dominance in the AI chip space shows little sign of slowing.

Yet, the next five years could usher in a new wave of AI computing infrastructure leaders. I predict that one company in particular -- Broadcom (NASDAQ: AVGO) -- could surpass the combined market value of Amazon (NASDAQ: AMZN) and Palantir Technologies (NASDAQ: PLTR) by 2030, fueled by surging demand for the networking, connectivity, and custom silicon that help underpin the AI revolution.

Amazon and Palantir could plateau despite AI tailwinds

Both Amazon and Palantir are poised to benefit from the continued rise of AI. However, each faces meaningful hurdles when it comes to further valuation expansion in the medium term.

Amazon's clearest exposure the AI trend lies within Amazon Web Services (AWS) -- its crown jewel and primary profit engine. Yet AWS faces fierce competition on the enterprise side from Microsoft Azure and Google Cloud, both of which are deploying AI-powered tools at a faster clip. Meanwhile, Amazon's consumer-facing AI initiatives -- spanning robotics, logistics automation, and retail personalization -- are just getting started. It could be years before they materially boost its operating income.

In short, while Amazon's AI efforts are broad, they are unlikely to generate explosive upside anytime soon for a company that's already valued at roughly $2.3 trillion.

Palantir, on the other hand, has become synonymous with AI-driven data analytics and intelligence software. Its Artificial Intelligence Platform (AIP) -- built around its Foundry, Gotham, and Apollo operating systems -- has captured enormous attention, fueling accelerating revenue growth and sustained profitability.

However, Palantir's valuation tells a different story. Trading at a price-to-sales (P/S) multiple approaching 180, the stock carries a premium that leaves it little room for error. Investors have already priced in years of expected future success, meaning any slowdown in contract wins or government spending could lead to significant multiple compression. Between now and 2030, it seems more likely that Palantir's valuation will normalize than that it will skyrocket further. 

Why Broadcom could become the next AI infrastructure giant

Broadcom isn't the first name most investors associate with AI -- and that's exactly what makes it so compelling. The company sits at the intersection of the AI hardware supply chain, producing data center networking gear, custom application-specific integrated circuits (ASICs), and connectivity solutions that make hyperscale AI clusters possible.

In recent years, Broadcom has become a critical supplier to tech titans such as Amazon, Alphabet, Microsoft, Oracle, and IBM. Earlier this year, CEO Hock Tan indicated that just three of its hyperscale customers could contribute $60 billion to $90 billion in revenue by fiscal 2027 -- providing remarkable visibility into its business outlook and backlog strength. More recently, management disclosed that Broadcom had secured a new $10 billion chip contract -- though it did not disclose the customer's identity.

Together, these developments highlight a broader trend: As AI workloads evolve, demand for specialized processors beyond Nvidia's GPUs is rapidly accelerating.

At the same time, Broadcom's diversified business model provides a stabilizing counterweight. Its software division, bolstered by its 2023 acquisition of VMware, generates steady recurring revenue from enterprise cloud customers. Meanwhile, its semiconductor operations span 5G networking, broadband, Wi-Fi, and storage connectivity, giving the company multiple profit engines that are not connected to the AI trend.

This balance puts Broadcom in a position to maintain its resilience across economic cycles even as it capitalizes on the AI infrastructure boom. It should benefit enormously from the secular AI tailwinds without being overexposed to their volatility.

Valuation expansion could drive Broadcom to record highs

Over the past three years, Broadcom stock has delivered a staggering 700% return, handily outperforming both the S&P 500 and Nasdaq Composite. The AI revolution has been the driving force behind this ascent, propelling Broadcom into the trillion-dollar club. While its forward price-to-earnings (P/E) ratio of 51 is far from cheap, the company's growth prospects remain firmly intact.

AVGO PE Ratio (Forward) data by YCharts.

According to Wall Street estimates, AI infrastructure spending could surpass $7 trillion in the years ahead. As hyperscalers continue investing heavily into data center buildouts and custom silicon, Broadcom should benefit from both earnings growth and multiple expansion through the end of the decade.

For investors seeking AI stocks that can produce compounding gains, it may be time to look beyond the usual suspects. Broadcom might not enjoy the level of hype generated by Nvidia or the brand power of Amazon and Palantir, but it does occupy a deeply entrenched role in the AI supply chain that keeps the digital world running. 

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Prediction: 1 artificial intelligence (AI) stock will be worth more than Amazon and Palantir combined by 2030 (Hint: It's not Nvidia) appeared first on The Motley Fool Australia.

Key Points

• Nvidia is the largest company in the world by market cap.
• Palantir's stock has been on a phenomenal run in recent years.
• Wall Street analysts see massive potential in both companies.

Few stocks have benefited more from the artificial intelligence (AI) revolution or generated better gains for shareholders than Nvidia (NASDAQ: NVDA) and Palantir (NASDAQ: PLTR). Nvidia is now the largest company in the world by market cap and is viewed as the ultimate pick-and-shovel play for the AI revolution. Meanwhile, many investors have come to believe that AI decision-making company Palantir has unlimited potential, and for most of the year, its stock has been on a tear.

While the market undoubtedly loves both of these stocks, Wall Street analysts covering one are pretty much unanimous in saying it's a buy, while those covering the other largely think it's overvalued.

Nvidia: The world's biggest company could get bigger

Surging sales and profits, combined with the hype around AI, have catapulted Nvidia to a roughly $4.27 trillion market cap (as of Sept. 2). With such a high valuation, some wonder how much higher Nvidia can keep going because at the end of the day, the law of large numbers suggests that beyond a certain point, growth rates invariably begin to plateau. Perhaps that's why the company's strong fiscal 2026 second-quarter earnings failed to give a lift to the stock.

But if you ask professional Wall Street analysts, Nvidia is indeed likely to keep moving higher over the next year. Of the 38 analysts who have issued research reports on Nvidia over the past three months, 34 rate the stock a buy, three call it a hold, and only one says sell, according to TipRanks. Their average one-year price target points to another 20% upside for the stock.

Nvidia currently trades at around 39 times forward earnings. That's certainly not cheap, especially for a company of its size, but by no means the most ridiculous multiple we've seen in the world of AI, especially when you consider that the chipmaker is still growing extremely fast. In fiscal Q2, Nvidia reported 61% growth in diluted earnings per share and 56% growth in revenue. Meanwhile, management is guiding for revenue to grow from the $46.74 billion it reported in the second quarter to about $54 billion in the third.

Keep in mind that for much of this year, the company has not been able to sell the H20 chips it designed specifically for the Chinese market. Those less powerful chips were previously acceptable to export to China even under the trade restrictions set by the U.S. government, but earlier in 2025, President Donald Trump blocked their export too. However, in August, Trump agreed to allow Nvidia to sell the chips to China again -- but the U.S. government gets 15% of the revenues from those sales.

Nvidia management has said the company could sell about $2 billion to $5 billion worth of chips to Chinese businesses in the current quarter if geopolitical tensions ease. Furthermore, CEO Jensen Huang estimates that business in China would have been a $50 billion opportunity in 2025, had it not been for geopolitical tensions. Huang also thinks the opportunity in China will grow by 50% next year.

"I'm feeling more bullish," Wedbush analyst Dan Ives recently told TheStreet. "Because when you factor even in the China numbers, this is really just the start of an acceleration for Nvidia across the board."

Palantir: Even great companies can have overvalued stocks

Palantir has been a darling of the market in recent years. The company leverages AI to help government agencies and companies gather, manipulate, and analyze data in ways that have never been possible before. The platform can also recommend certain actions based on the data and discuss some of the potential repercussions of taking such actions. Palantir's stock has more than doubled this year and is up by more than 1,600% in the past five years.

It's likely for this reason that some Wall Street analysts think the stock has run too far, too fast. Of the 20 Wall Street analysts who have issued research reports on Palantir over the past three months, five have buy ratings on the stock, 13 call it a hold, and two say sell, according to TipRanks. Their average one-year price target for Palantir implies that the stock is fairly valued at its current level.

Palantir has certainly demonstrated strong growth. In the second quarter, revenue grew 48% year over year, while diluted earnings per share more than doubled. However, trading around 242 times forward earnings, the company's valuation premium is simply stunning.

Citron Research's Andrew Left, a famous short-seller, said he is a fan of the company and its CEO, Alex Karp, but that the valuation has clearly gotten out of hand.

"It's a wonderful company, but if this was the greatest company that was ever created and we gave it the same multiples, let's say Nvidia in 2023, the stock still can get cut by two-thirds, and that would be like 35 times sales," he said in an interview on Fox Business last month.

Some investors still may want to add the stock to their portfolios to increase their exposure to the AI space. If you're one of them, I would recommend either using a dollar-cost averaging approach, which would smooth out your cost basis over time, or waiting for a better entry point to buy. 

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Nvidia vs. Palantir: Wall Street analysts say to buy one, but think the other is overvalued appeared first on The Motley Fool Australia.

The group of seven is comprised of Apple Inc (NASDAQ: AAPL), Tesla Inc (NASDAQ: TSLA), NVIDIA Corp (NASDAQ: NVDA), Meta Platforms Inc (NASDAQ: META), Amazon.com, Inc. (NASDAQ: AMZN), Alphabet Inc (NASDAQ: GOOGL) (NASDAQ: GOOG), and Microsoft Corp (NASDAQ: MSFT) stocks.

For a long time, these seven soaring US stocks have made up about a third of the market capitalisation of the S&P 500 Index (SP: .INX).

For the past few years, they have delivered an outstanding performance, exhibiting impressive earnings growth and share price growth.

But Gleeson says times are changing.

Magnificent Seven losing significance: expert

Gleeson says the Magnificent Seven is losing significance because the seven stocks are no longer performing in tandem as a group.

In a new article, Gleeson writes:

… the Magnificent 7 stock prices are no longer acting like a homogeneous group.

The best performing company in this cohort is Nvidia, whose share price is up 28%.

Tesla's is down 14% as markets come to the realisation that its business model is fundamentally different to the other Mag 7 names.

Check out the Magnificent Seven's divergent share price performance during our Aussie FY25 (1 July 2024 –  30 June 2025).

One Mag 7 stock leapt 61% while two of them lost value over the 12 months.

What's happening with these companies?

Gleeson says Apple has lost touch with the pack after delays in rolling out artificial intelligence (AI) features that underwhelmed users.

He writes:

The company is under increasing pressure to make a big AI acquisition to catch up to others like Meta and Microsoft.

Gleeson says companies like semiconductor giant Broadcom (NASDAQ: AVGO), data analytics firm Palantir Technologies (NASDAQ: PLTR), and subscription streaming service Netflix (NASDAQ: NFLX) have started to take over market leadership from Apple and Tesla.

This is happening because investors are switching to companies that are displaying stronger evidence of AI-related earnings growth.

Gleeson says:

As with the development of any new technology, new leaders can be expected to emerge over time.

This decoupling comes as the NASDAQ-100 Index (ASX: NDX) outpaces the earnings growth of the Magnificent Seven stocks.

Nasdaq 100 outperforms Mag 7 on earnings

Gleeson says the Mag 7 stocks delivered more than 15% year-over-year earnings growth in 2Q 2025.

This compares to a faster rate of 16.9% for the rest of the Nasdaq 100.

Gleeson argues the AI narrative is now broader than the Magnificent Seven stocks.

He comments:

If AI can deliver a productivity dividend, and massive capex spend on AI data centres and infrastructure has a stimulatory effect, it will likely benefit the US economy as a whole, not just the hyperscalers.

Other macroeconomic tailwinds are also supporting this shift.

Gleeson notes that recent weakness in the US dollar is boosting reported earnings for all tech companies selling to buyers worldwide.

Netflix, which earned 56% of its revenue outside the US in 2024, is a relevant example.

Betashares believes the Nasdaq 100 is well-positioned in this new landscape.

In our view, AI, currency and earnings growth provide strong tailwinds for the NASDAQ 100.

With higher rates unlikely, the threat of trade sanctions and retaliatory measures lifted, plus support from the White House, our view is the NASDAQ 100 has significant potential upside from here.

Have you heard of ASX NDQ?

Betashares is the provider of the popular ASX exchange-traded fund (ETF) Betashares Nasdaq 100 ETF (ASX: NDQ).

Gleeson says the NDQ ETF offers diversified exposure beyond the Magnificent Seven and includes Broadcom, Netflix, and Palantir stocks.

The post Why the Magnificent Seven 'is becoming an irrelevant concept': expert appeared first on The Motley Fool Australia.

Geopolitical instability is pushing governments around the world to increase their military readiness.

In June, the 32 member nations of NATO committed to raising their defence spending from 2% of GDP to 5% by 2035.

This was directly beneficial to the Betashares Global Defence ETF because it only invests in defence companies headquartered in NATO member or allied nations.

Betashares said defence was one of the 2 best-performing ETF investment themes in the second half of FY25.

What's in the ARMR ETF portfolio?

This thematic ASX exchange-traded fund (ETF) is fairly new, having only been listed in October 2024.

The ARMR ETF tracks the VettaFi Global Defence Leaders Index (before fees).

It gives investors targeted exposure to companies that derive more than 50% of their revenues from the development and manufacturing of military and defence equipment and defence technology.

The ETF currently holds 43 stocks focused on defence, with 84.7% of assets in aerospace and defence companies, 8.2% in software, and 6.5% in research and consulting services.

Its country allocation is led by the United States (59.5%), followed by France (11.5%), Germany (9.3%), Britain (8.8%), and South Korea (3.1%).

Here is a table of the top 10 holdings in the ARMR ETF and what those companies do.

What about income?

In terms of dividends, the ARMR ETF intends to pay one distribution per year.

ARMR ETF paid its maiden dividend of 53.546615 cents per unit this month.

There is a yearly management fee of 0.55%.

The post Here is what you're invested in with ARMR ETF appeared first on The Motley Fool Australia.

This thematic ASX exchange-traded fund (ETF) has gained a lot of attention from investors amid US pressure for other nations to raise defence spending over the past several months.

Overnight, the 32 member nations of NATO committed to raising their defence spending from 2% of GDP to 5% of GDP by 2035.

That's huge.

32 NATO countries commit to ramping up defence spending

To get some understanding of the scale of this increase in defence spending, let's look at Germany.

Before the NATO Summit, the German Government had already proposed to raise its defence spending from 2% to 3.5% of GDP by 2029.

That's the equivalent of almost 400 billion euros (US$464 billion) in extra defence spending by just one nation within NATO.

Secretary-General Mark Rutte says NATO needs "a quantum leap" in defence spending to keep up with China and Russia's build-up.

VanEck caught on to this growing defence spending trend and launched the VanEck Global Defence ETF in September last year.

The DFND ETF provides exposure to global companies manufacturing and distributing military infrastructure, products, and services.

The ETF tracks the MarketVector Global Defence Industry (AUD) Index (before fees), which was launched in August 2024.

And wow, has it shot the lights out. The DFND ETF's unit price has risen by 70% since its inception.

This compares to a 7% lift for the S&P/ASX 200 Index (ASX: XJO) and an 11% rise for the S&P 500 Index (SP: .INX) over the same period.

What are you buying with the DFND ETF?

The ETF currently invests in 29 stocks in developed markets, with US shares accounting for 52.23% of assets.

Next is France (10.57%), Italy (8.41%), South Korea (7.98%), Sweden (6.35%), Israel (4.29%), Singapore (3.88%), the United Kingdom 3.69%), and Germany (2.38%).

The stocks represent some of the world's largest companies involved in aerospace, research, software, and electronic equipment.

Importantly, VanEck says defence companies are "typically under-represented in benchmarks".

That means you shouldn't assume you have exposure to them if you're invested in the major indices.

Here is a table of the top 10 holdings in the DFND ETF and what those companies do.

What about dividends?

In terms of dividends, the DFND ETF intends to pay a distribution annually.

At the time of writing, it has not yet paid a distribution.

There is a yearly management fee of 0.65%.

The post Here are the top stocks in the DFND ETF appeared first on The Motley Fool Australia.

The artificial intelligence (AI) industry is enjoying explosive growth, making it a great area to invest in. Forecasts estimate the AI market will expand from $244 billion in 2025 to $1 trillion by 2031. Two standout stocks in the sector are Palantir Technologies (NASDAQ: PLTR) and Nvidia (NASDAQ: NVDA).

Palantir shares have rocketed more than 400% over the past 12 months through the week ending June 20. Nvidia is seeing its stock surging back from a 52-week low of $86.62 in April to near its January peak of $153.13.

Both companies offer reasons to invest in their stocks, but if you had to choose one, which would be the better AI investment for the long run? Here's a look at Palantir and Nvidia to arrive at an answer.

The case for Palantir stock

Palantir is a compelling investment choice because of the massive success of its Artificial Intelligence Platform (AIP). Since AIP's launch in 2023, the company's business has been booming.

For instance, in the first quarter, revenue rose 39% year over year to $883.9 million. Ryan Taylor, Palantir's chief revenue and legal officer, stated, "Unrelenting demand for AIP continues to drive outperformance despite Q1 historically being our slowest quarter due to business seasonality."

Its strong start to 2025 contributed to the company raising its full-year sales guidance from $3.7 billion to $3.9 billion. This represents a substantial increase from 2024's $2.9 billion in revenue.

Not only is AIP successful, the company is expanding its revenue opportunities by offering new AI products. One is Warp Speed, which uses AI to boost U.S. manufacturing efficiencies, such as handling resource planning and anticipating supply chain changes.

About Warp Speed, CTO Shyam Sankar noted, "Both the adoption and the rate of product development has exceeded expectations."

Palantir's sales growth has translated into strong financials. Its Q1 net income reached $217.7 million, more than double 2024's $106.1 million. The company's free cash flow (FCF) of $370.4 million is an impressive 42% year-over-year increase.

Reasons to consider Nvidia stock

The rationale for Nvidia's attractiveness as an AI investment begins with its leadership in semiconductor chips for AI. Its market share in this area is estimated to exceed 70%.

Nvidia's popular AI chips helped sales grow 69% year over year to $44.1 billion in its fiscal Q1, ended April 27. The company isn't resting on its laurels.

Nvidia introduced its latest AI computing architecture, Blackwell, last year and has already announced Vera Rubin as Blackwell's successor. Vera Rubin is expected to arrive in 2026.

What makes Nvidia's new tech compelling for customers is that it's designed for the age of AI reasoning in which AI can more closely mimic human thinking. This ability is essential for agentic AI, which refers to AI systems capable of making decisions and completing tasks on their own.

Nvidia's popular hardware is only part of its strength. It also provides software called the Compute Unified Device Architecture (CUDA). CUDA is an essential tool to customize Nvidia's hardware when building AI systems, and this makes switching costs higher.

Like Palantir, Nvidia's financials are excellent. Fiscal Q1 net income rose 26% year over year to $18.8 billion, while FCF hit $26.1 billion, a 75% increase from the prior year's $14.9 billion.

However, Nvidia's global leadership in AI chips took a step back in China because of U.S. government restrictions on selling AI components to the country. News reports indicate Nvidia is revising its hardware specs to gain approval to commence sales into China once again.

Even without China, Nvidia is poised for years of growth as businesses and governments rush to build AI capabilities. Nvidia CEO Jensen Huang noted, "Countries around the world are recognizing AI as essential infrastructure -- just like electricity and the internet -- and Nvidia stands at the center of this profound transformation."

Deciding between Palantir and Nvidia

Because Palantir and Nvidia are both strong businesses, choosing between them is a challenge. Stock valuation is one factor that can aid in this decision.

Here's a look at each company's price-to-earnings (P/E) ratio, which tells you how much investors are willing to pay for a dollar's worth of a company's earnings based on the trailing 12 months.

Data by YCharts.

As the chart shows, Nvidia's P/E multiple is just a fraction of Palantir's, indicating Nvidia is the better value. In fact, Palantir's P/E ratio has climbed higher in recent months, suggesting the stock is overpriced.

This key factor makes Nvidia's stock the superior investment over Palantir. Beyond valuation, Nvidia's established leadership in AI and its ongoing push to evolve its AI tech positions the company for years of sustained success.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Better artificial intelligence stock: Palantir vs. Nvidia appeared first on The Motley Fool Australia.

Artificial intelligence (AI) is the defining technological innovation of our era. In just a few short years, AI is expected to reshape every corner of society.

Semi-autonomous robots may soon handle your laundry, then hop in a self-driving car to pick up groceries. Life is about to get radically different -- ideally, for the better.

At the center of this so-called Fourth Industrial Revolution is Nvidia (NASDAQ: NVDA), the leading supplier of AI chips powering everything from data centers to robotics. Thanks to its central position within the AI value chain, Nvidia's stock has delivered a remarkable 829% return over the past 36 months, turning a $10,000 investment into $92,880.

As incredible as that sounds, Palantir Technologies (NASDAQ: PLTR) has done even better. Over the same 36-month period, Palantir has returned an astonishing 1,744%, transforming that same $10,000 investment into $184,370, nearly double Nvidia's impressive gains.

Both companies are riding the same tidal wave -- but in different lanes. Nvidia builds the computational engine, while Palantir delivers the software layer that interprets the data and enables real-world decisions.

Which of these top innovation stocks is the better buy as a core AI holding?

Latest financial metrics

Nvidia's Q1 fiscal 2026 results (ended April 27, 2025) showcased both massive scale and new headwinds. Revenue hit $44.1 billion, up 69% year over year, with data center revenue specifically climbing 73% to $39.1 billion.

Still, the China situation is deteriorating rapidly. Nvidia lost $2.5 billion in H20 revenue in Q1 and expects to lose $8 billion in Q2 from new export licensing requirements. CEO Jensen Huang lamented that "the $50 billion China market is effectively closed to us," with market share in the country falling from 95% to 50% under these restrictions.

Palantir, meanwhile, is hitting "escape velocity." Q1 2025 revenue of $884 million grew 39% year over year, accelerating from previous quarters. U.S. revenue surged 55% to $628 million, with U.S. commercial revenue exploding 71% to $255 million, surpassing a $1 billion annual run rate for the first time in company history. Palantir also raised full-year 2025 guidance to $3.89 to $3.9 billion, representing projected annual growth of about 36% year over year.

Market opportunity and positioning

The global AI market is projected to surpass $826 billion by 2030, even on conservative estimates. Within this vast opportunity, Nvidia and Palantir Technologies occupy distinct positions along the AI value chain.

Nvidia leads the infrastructure layer, powering the compute backbone of AI. CEO Jensen Huang projects annual data center spending could exceed $1 trillion by 2028.

The company is evolving from a chipmaker into a builder of AI factories, with new partnerships to construct AI supercomputers across the U.S., Saudi Arabia, the UAE, and Taiwan. Its Blackwell Ultra architecture and DGX SuperPOD systems place Nvidia at the forefront of "agentic AI reasoning" -- a key step toward the emergence of autonomous, intelligent systems.

Palantir, by contrast, operates in the application layer, helping enterprises deploy AI across real-world use cases. CEO Alex Karp described the company as being "in the middle of a tectonic shift," as demand for large language models has "turned into a stampede." Unlike many AI companies focused on research or infrastructure, Palantir is already monetizing AI through government contracts and commercial deployments, giving it a practical foothold in the race to bring AI into everyday operations.

The valuation disconnect

Despite commanding massive revenue and leading the AI infrastructure space, Nvidia trades at 46 times trailing earnings, well below its five-year average price-to-earnings ratio (P/E) of 78. Its forward P/E of 30 suggests the market is accounting for China-related export risks and a natural deceleration in growth from its enormous base.

Palantir, by contrast, trades at valuation levels that challenge traditional metrics. The stock has a trailing P/E exceeding 600 and a forward ratio exceeding 230.

These elevated multiples reflect investor belief that Palantir is at a key inflection point. The market appears to be betting on the company's ability to sustain hypergrowth while expanding its margins, a high bar that leaves little room for missteps.

PLTR P/E Ratio data by YCharts.

The verdict

Palantir stock has been a phenomenal performer, but at 600 times earnings, perfection is already priced in. Any execution slip or slowdown in growth could prompt a sharp repricing. While its $3.9 billion revenue run rate is expanding rapidly, it remains relatively small, compared to the multitrillion-dollar AI market.

Nvidia offers a more compelling risk-reward profile. At 46 times earnings, roughly 40% below its recent historical average, the stock combines reasonable valuation with several powerful growth catalysts. The Blackwell product cycle is just beginning, and robotics -- a largely overlooked segment -- could become a significant driver over the next decade.

Palantir remains a compelling long-term growth story, but its current valuation demands flawless near-term execution. In this match-up, Nvidia stands out as the stronger core AI investment.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Better core AI stock: Nvidia or Palantir Technologies? appeared first on The Motley Fool Australia.

This has been a successful strategy.

In 2024, the S&P 500 Index (SP: INX) rose by 23.31% and delivered total returns (including dividends) of 25.02%.

The ASX 200 delivered a healthy but inferior total gross return of 11.44%.

So, it's not surprising that many Aussie investors who have been proactively buying the dip of late have targeted US shares.

Top 10 most traded US shares

New data from online trading platform Stake provides insights into exactly which US shares are on investors' radars most.

The following table shows the 10 most traded US shares on the Stake platform on Monday, 7 April.

That was when we saw the biggest market dip on the ASX last week, with the ASX 200 falling 4.23%. 

That was preceded by one of the biggest falls on the US stock market since the COVID-19 pandemic began in 2020.

On Friday, 4 April, the S&P 500 fell 5.97%.

Largest volume of US stock trades in more than a year

Stake's markets analyst, Samy Sriram, said the volume of total trades of US shares on the Stake Wall St platform was the largest in more than a year on Monday.

Sriram commented:

A large cohort of retail investors saw an opportunity to 'buy the dip,' with the magnificent seven cohort and US index tracking ETFs like VOO seeing significant trading volume.

Sriram said Apple stock saw "the most meaningful increase in buy orders" among Australian investors on Monday.

That may have been because Apple shares were crushed during the US trading sessions on 3 April and 4 April, dropping by 15.86%.

As the table shows, the top 10 US shares traded on Monday had a heavy leaning to the buy side.

This indicates more investors were proactively buying the dip.

However, Sriram noted that sell orders on Tesla shares on Monday were higher than average at 30% of its trades.

This may indicate that some longer-term Tesla investors decided to take their capital gains and run after a difficult period for the stock.

Tesla shares are down 37.5% in the year to date.

Many investors have felt concerned that Tesla CEO, Elon Musk, is too distracted by his new role with the Department of Government Efficiency (DOGE), and this may become detrimental to his EV company.

Interested in ASX shares?

Find out the 10 most popular ASX stocks that Aussie investors are targeting during this market volatility.

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Three years after the launch of OpenAI's ChatGPT, the generative AI hype cycle is getting long in the tooth as investors grow impatient with the lack of value being created on the software side of the industry.

Artificial intelligence (AI)-related tech companies like Palantir Technologies (NASDAQ: PLTR) and Tesla (NASDAQ: TSLA) are now struggling to justify their optimistic valuations. They also face the unraveling of political hype, which boosted their stocks after Trump's election victory in November. Let's discuss some reasons why these stocks aren't worth buying on the dip.

1. Palantir Technologies

Palantir's bull thesis is losing steam, with shares down 36% -- at the time of this writing -- from their all-time high of $125 reached in mid-February. The company's shares boomed after it integrated AI large language models (LLMs) into its data analytics platforms, while Trump's election victory generated additional hype. However, both catalysts are turning into disappointments.

While Palantir's co-founder Peter Thiel is a public backer of Trump and his vice president, JD Vance, it is unclear how this will lead to tangible benefits for Palantir. On the contrary, some of the new administration's goals (such as reducing the Pentagon budget by 8% annually) could actually shrink the market for Palantir's services. Government clients made up around 42% of its revenue in full-year 2024.

Palantir's AI pivot is also not as transformational as the market seemed to expect. While company sales grew 47% in 2020 (two years before OpenAI's ChatGPT brought generative AI to the mainstream), its growth rate has fallen to just 29% in 2024. While this isn't a horrible growth rate, it doesn't justify the company's price-to-earnings (P/E) multiple of 419.

The company's profitability is also under pressure from massive stock-based compensation expenses, which totaled $281.8 million in the fourth quarter. That's 74% of adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA).

2. Tesla

Like Palantir, Tesla's stock price has boomed in response to generative AI and Trump's election victory. However, while Tesla's CEO, Elon Musk, plays a role in the new administration, investors may have underestimated the negative impact political involvement is having on his company.

According to analysts at JPMorgan, Tesla has experienced unprecedented reputational damage. And this trend is having a noticeable impact on sales, especially in European countries like Germany, where February sales plunged 76% compared to the prior-year period (to 1,429 vehicles sold).

That said, if there is any silver lining to the situation, individual European countries are not that important to Tesla's overall business. And Musk could use his political influence to ease tensions in the world's largest EV market, China, where potential anti-U.S. sentiment could have a much more significant impact on operational performance. In 2024, Tesla sold more than 657,000 units in China. And Musk will need to shore up this business in the face of rising competition from domestic rivals.

With a P/E multiple of 118, Tesla's valuation seems too high, considering its slowing sales, reputational damage, and other challenges in its international markets. A pivot to AI and self-driving cars could eventually help the company diversify outside the automotive industry. But until that happens, investors should stay far away from the stock.

Which stock has a better chance of recovery?

Palantir and Tesla are both overvalued stocks that look poised for continued downside. But between the two, Palantir looks more likely to crash because of its higher level of overvaluation.

While Tesla also faces intense near-term challenges, its self-driving technology could eventually unlock new revenue streams in software and services. While investors should stay away from Tesla stock now, they should keep the company on their watch list pending more information about these potential long-term growth drivers.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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Maybe you've been letting extra cash accumulate in an online savings account that's paid a decent interest rate. Or you stashed an end-of-year bonus to buy some stock when the market pulls back. The S&P 500 has surged higher by more than 20% for two consecutive years now, so the thought of getting in at these lofty levels might be nerve-wracking.

But with rates in those savings accounts starting to drop, it may be time to pull the trigger. And you want to be aggressive with this money. You can afford to if you're young, or even just have other buckets with more conservative investments.

Palantir's surge of greatness

The fast-growing artificial intelligence (AI) sector is where you think this money should go. That makes sense, as it may still be in its infancy stage and has massive potential to transform how companies do business. Like many others, you might think both Nvidia (NASDAQ: NVDA) and Palantir Technologies (NASDAQ: PLTR) have plenty more potential, even after both stocks rocketed higher.

Nvidia captured most of the headlines in the last year or two, but it might surprise investors to find out that Palantir stock outpaced Nvidia's returns by a wide margin. Palantir grew quickly by offering AI software platforms that help manage and secure data for user- and machine-assisted analysis. Its applications expanded from the military to include commercial customers as well. Palantir stock rocketed more than 750% in the last three years.

Of course, Nvidia stock also provided a market-thrashing return of 425% in that time thanks to its AI hardware and software offerings. But Palantir is currently the hot stock, with much of that three-year return coming in just the last 12 months.

That's because the company is quickly growing sales at a time when much focus is on improving efficiencies and problem-solving in U.S. government agencies, law enforcement agencies, financial institutions, and commercial enterprises. All of these are part of Palantir's customer base.

Both companies are growing fast

Palantir and Nvidia are high-growth tech stocks. Yet it's fair to question whether Palantir is growing fast enough to justify its recent stock surge. Sales increased 29% year over year in 2024.

And the rate of growth is increasing, too. Management predicts 2025 revenue will grow 31% versus last year. It's profitable growth as well, with an operating profit margin of 39% for full-year 2024.

But Nvidia is still growing even faster. That's impressive for what is a much larger company. Nvidia's market cap of almost $3.2 trillion compares to $250 billion for Palantir. Nvidia is scheduled to report its fiscal fourth-quarter earnings on February 26. Using management's guidance, though, revenue for the fiscal year ending in late January 2025 will show growth of about 110% year over year.

Stock value reflects Palantir's growth

Maybe more importantly, Nvidia shows sequential quarter-over-quarter revenue growth in the high teens over the last six months. Palantir's quarter-over-quarter sales growth accelerated to 14% in its most recent quarter.

It might continue to accelerate, but by some metrics, Palantir's valuation dwarfs that of Nvidia. Palantir's forward price-to-earnings (P/E) and price-to-sales (P/S) ratios are a mind-boggling 200 and 67, respectively. Compare that to just about 30 and 16, respectively, for Nvidia.

Nvidia's optionality

Nvidia's sales are predicted to continue to grow thanks to its AI-focused chips. The company also created an ecosystem of related software that keeps its AI solutions in high demand. But even if its growth rate slows more than market watchers anticipate, the stock is still a better value than Palantir.

And while Nvidia's data center segment is the focus of its growing sales, servers and compute power aren't the only places where its technology will be used. Nvidia will benefit if self-driving vehicles and robotics become more mainstream. While sales in those areas pale in comparison to data centers, it could be the next growth catalyst for Nvidia.

Data source: Nvidia. Chart by author.

Palantir has great potential as a business and also as a stock investment. And investors with a tolerance for risk and stress may want to invest in the AI software company in stages.

But Nvidia also still has much more potential for growth. It's also trading at a much lower valuation than Palantir. That should lead to better returns in the near- and mid-term. In my opinion, that makes it the better AI stock to buy now.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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Since 2023 began, Wall Street's major stock indexes have been practically unstoppable. The ageless Dow Jones Industrial Average (DJX: .DJI), benchmark S&P 500 (SP: .INX), and growth-powered Nasdaq Composite (NASDAQ: .IXIC) have ascended to numerous record-closing highs.

Investors haven't hurt for catalysts, with a laundry list of positives responsible for perpetuating this more than two-year rally. This includes the rise of artificial intelligence (AI), Donald Trump's election night victory (all three stock indexes soared during his first term in the White House), and better-than-expected corporate earnings, to name a few key variables.

But with the stock market sporting one of its priciest valuations in 154 years, corporate execution needs to be flawless to maintain this rally. Unfortunately, some of Wall Street's most influential companies have an earnings quality problem — and it simply can't be ignored any longer.

A painful realisation: The stock market is historically pricey

When investors are attempting to value a stock, they'll often turn to the traditional price-to-earnings (P/E) ratio. This measure divides a company's share price into its trailing-12-month (TTM) earnings per share (EPS). It's a fantastic tool for quickly determining the cheapness or priciness of mature businesses, relative to its industry and/or the broader market, but it can get tripped by growth stocks and shock events that reduce EPS.

A considerably better measure of value for the broader market is the S&P 500's Shiller P/E Ratio, which is also commonly known as the cyclically adjusted P/E Ratio (CAPE Ratio). Instead of using TTM EPS, the Shiller P/E Ratio is based on average inflation-adjusted EPS spanning the last 10 years. This smooths out the effects of shock events and allows for true apples-to-apples valuation comparisons.

Even though the Shiller P/E Ratio wasn't created until the latter half of the 1990s, it's been back-tested to January 1871, allowing for 154 years of historic valuation comparisons.

S&P 500 Shiller CAPE Ratio data by YCharts.

As of the closing bell on Feb. 6, the S&P 500's Shiller P/E clocked in at a reading of 38.37, which is just shy of its closing high of 38.89 for the current bull market. More importantly, it represents only the third time in 154 years where this valuation tool has topped a reading of 38 during a continuous bull market.

Widening the lens a bit further, there have only been a half-dozen occasions since January 1871 when the Shiller P/E has surpassed 30, including the present. Following the previous five instances, the S&P 500, Dow Jones, and/or Nasdaq Composite shed 20% to 89% of their value.

A historically pricey stock market has been a harbinger of trouble to come for Wall Street for more than 150 years, which is why earnings quality from America's most influential businesses is more important than ever. The problem is that a dollar in corporate profit isn't always what it's cracked up to be.

Some of Wall Street's most influential companies have an earnings quality problem

Businesses that offer cutting-edge innovations and/or possess seemingly insurmountable moats and competitive advantages have led the broader market higher. However, not all of these businesses are as amazing as they appear on the surface.

An ideal example of what I'm talking about is electric vehicle (EV) maker Tesla (NASDAQ: TSLA), which recently reported $8.99 billion in pre-tax income in 2024. Superficially, Tesla appears to be firing on all cylinders, with its energy generation and storage segment growing by double digits and the company registering its fifth consecutive year of generally accepted accounting principles (GAAP) profit. Most EV makers aren't even profitable.

But if investors really dig into Tesla's operating results, they'll find that $2.76 billion of its pre-tax income came from selling regulatory tax credits to other automakers, and another roughly $1.57 billion traces back to interest income generated from its cash. The company also recorded a $600 million mark-to-market gain on the value of its Bitcoin holdings during the fourth quarter. While I'm not faulting Tesla for taking advantage of these opportunities, it's worth pointing out that more than half of its pre-tax income originates from unsustainable, non-innovative sources.

Though the buzz surrounding Tesla ties into full self-driving, the incorporation of AI, robotaxis, and autonomous robots, the reality is that most of Tesla's income comes from regulatory credits given to the company for free by federal governments, interest income on its cash, and digital asset adjustments.

But this isn't just a Tesla problem. Poor earnings quality is a widespread issue among a number of prominent stocks.

Last week, AI-driven data-mining specialist Palantir Technologies (NASDAQ: PLTR) knocked Wall Street's socks off by reporting a re-acceleration of its growth rate. The company's Gotham platform, which aids federal governments with data collection and mission planning/execution, has helped propel the company's GAAP profits higher.

But amid Palantir's double-digit sales growth and 2025 revenue guidance that handily topped Wall Street's consensus is the reality that a significant portion of its pre-tax income derives from interest income earned on its cash. Palantir reported $489.2 million in pre-tax income in 2024, $196.8 million of which was interest income. Investors don't expect a company trading at 88 times TTM sales to be generating 40% of its annual pre-tax income from an unsustainable and non-innovative source like interest income.

Tech goliath Apple (NASDAQ: AAPL) serves as yet another example. The company behind the undisputed leading smartphone (iPhone) in the U.S. is expected to enjoy tailwinds from the incorporation of Apple Intelligence into its physical devices. Apple's AI model has the potential to reignite consumer interest in iPhone, Mac, and iPad.

Something else Apple is known for is its world-leading share repurchase program. Since the start of 2013, it's repurchased almost $750 billion worth of its common stock and lowered its outstanding share count by 43% in the process. Buybacks of this magnitude help to lift EPS and can make a company's stock appear more attractive to fundamentally focused investors.

But in Apple's case, buybacks have masked the stalling of its physical product growth engine and a notable decline in net income. Even though its full-year EPS has been fairly static thanks to its ongoing share repurchase program, net income has declined from $99.8 billion in fiscal 2022 (ended Sept. 24, 2022) to $97 billion in fiscal 2023 (ended Sept. 30, 2023) to $93.7 billion in fiscal 2024 (ended Sept. 28, 2024).

With the stock market historically pricey, corporate earnings can't be taken at face value. Regardless of how important or influential a company might be to fuelling Wall Street's rally, investors need to ensure businesses are producing quality profits and not those masked by unsustainable and non-innovative sources.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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Are Nvidia (NASDAQ: NVDA) shares in trouble? It's a question many investors have been asking after the stock tumbled more than 20% from recent highs.

Today, let's examine what has happened with Nvidia and whether another stock might be the smart choice for artificial intelligence (AI) investors in 2025.

How DeepSeek challenges the Nvidia thesis

A good rule of thumb for investing is to always have a thesis -- a rationale for why you believe a stock will deliver value over the long term.

For Nvidia, the most widely accepted thesis explaining the rapid rise of its stock is that the company will be the engine behind the AI boom. The AI revolution will require millions of GPUs, and Nvidia will be selling many of them, generating hundreds of billions in revenue and profits.

It's a solid thesis, and one that I share. However, the emergence of DeepSeek, which was developed in China, seems to undercut that thesis. Specifically, its designers claim that it took only a fraction of the computing power to train their model, and roughly $5.6 million.

If those claims are accurate, it would appear that American companies are spending far more than necessary on Nvidia GPUs, thus the thesis that its stock would come crashing down.

Why investors in Nvidia shares shouldn't panic

First of all, I do not believe DeepSeek undermines the investment thesis for Nvidia.

Part of the reason is that I view any news coming out of China -- particularly as it relates to AI -- with a healthy amount of scepticism. China is America's great geopolitical rival, and propaganda and misinformation are used by great powers to further their ends.

Moreover, since the U.S. Government placed export restrictions on certain Nvidia GPUs, there are various parties who may want to obscure which GPUs were used to train the DeepSeek model.

What's more, an analysis from the research company SemiAnalysis noted that the cost to train the DeepSeek model was likely $500 million, almost 100 times more than what its designers reported.

Therefore, in my view, there's no good reason to forget Nvidia shares right now. Nevertheless, some investors may want to trim back their holdings or simply move on. And in that case, my suggestion would be to check out Palantir Technologies (NASDAQ: PLTR).

Why Palantir is the next great AI company

For those who follow AI stocks closely, Palantir is one of the big names. However, for the average investor, it is far from an iconic company. Yet it's already a corporate giant.

As of this writing, Palantir's market cap is $241 billion. That makes it more valuable than McDonald's, AT&T, and American Express, to name just three legendary U.S. companies. Palantir is now the 32nd-largest American company overall, and it has all happened in a flash. A year ago, it wasn't even part of the S&P 500.

So, why is Palantir stock riding such a hot streak? The answer is that it aims to do something Microsoft did in the 1980s: become the operating system of the next technological revolution.

The company operates an AI-powered platform that can analyse an organisation's data and drive impressive efficiency. It takes the promise and power of AI hardware and puts it to practical use.

As a result, its fundamentals are near-perfect. In its most recent quarter (ending on December 31, 2024), Palantir blew away expectations, highlighted by the following:

• Revenue increased 36% year over year to $828 million.
• Overall customer count grew 43%.
• Adjusted free cash flow rose to $517 million.

The company continues to bring in new clients that are eager to use its AI platform. In turn, management provided upbeat guidance that came in well ahead of expectations, fueling another big increase in Palantir's stock. Shares are up more than 500% over the last 12 months.

To close, I still believe in Nvidia's thesis. I think the company is well positioned to benefit from the AI revolution for many years to come. However, for investors who are looking for an alternative that may have even more upside than Nvidia shares, I would consider Palantir Technologies. Like Microsoft before it, the company could be a decades-long winner in the making.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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