Palantir's Stock Ascends in After-Hours Trade as AI Demand Skyrockets

Palantir Technologies Inc (PLTR) observed a rise in its stock price during Wednesday's after-hours trading session, thanks to Nvidia Corp (NVDA) releasing an earnings report that surpassed Wall Street's expectations. This upward movement signifies a broader trend in the technology sector where companies have experienced growing demands for artificial intelligence (AI) capabilities.

Understanding the Earnings Surprise

Nvidia disclosed a fourth-quarter revenue of $22.1 billion—a figure that exceeded the consensus estimate of $20.62 billion. The earnings per share (EPS) for the quarter were reported at $5.16, surpassing the anticipated $4.64. Several segments of Nvidia's business saw notable revenue increases, particularly data center revenue with a 409% surge, gaming revenue up by 56%, and professional visualization which grew by 105%. Automotive revenue, however, dipped by 4% from the previous year.

The company is steering towards an impressive fiscal year 2025 with an estimated revenue of about $24 billion, which is roughly 2% higher or lower than the forecasted $22.16 billion. Nvidia's leadership expressed that AI, especially accelerated computing and generative AI, has reached a pivotal moment, fostering a global surge in demand from various companies and industries.

Palantir's AI Platform Draws Attention

Palantir Technologies, which revealed its quarterly findings earlier in February, mentioned a continuous heightened demand for its AI offerings. The company is one of several benefiting from the increase in AI demand that has been observed over the past 18 months. Besides Palantir, other AI-focused entities such as C3.Ai Inc, SoundHound AI Inc, and BigBear.Ai Inc are experiencing a boost, alongside several chipmakers, as a result of Nvidia's positive earnings report.

Notably, Nvidia had revealed investments in various tech-focused companies like Arm Holdings, Recursion Pharmaceuticals, SoundHound AI, TuSimple Holdings, and Nano-X Imaging in a recent SEC filing. Following the announcement of Nvidia's earnings, these companies also witnessed an uptick in their stock values.

After-Hours Performance for Palantir

Reflecting the post-earnings enthusiasm, Palantir's shares saw an after-hours increase of 3.96%, trading at $23.64. This bears testament to the market's optimistic view on companies that are well-positioned to cater to the escalating AI demand.

Palantir, Nvidia, Stock, Earnings, AI