'Nvidia Moment Probably Near,' Top Investor Says About Palantir Stock – TipRanks.com

Hindsight, as they say, is 20/20. While analyzing the past is easy, predicting the future is much more challenging. For this cannot be true Nvidia (NASDAQ:NVDA)Countless investors are kicking themselves for not seeing the AI ​​unicorn before it skyrockets into the stratosphere.

can Palantir (NYSE:PLTR) Could Nvidia be the next AI-inspired growth story to follow in its footsteps? Top investor James Ford thinks it might.

“Palantir's unique technology, large addressable market, and margin expansion potential are similar to NVIDIA's pre-AI revolution phase,” wrote Foord, who sits in the top 4% of all stock professionals on TipRanks.

Ford acknowledged that opinion about Palantir is divided, noting that traditional metrics may actually suggest the big data analytics company is overvalued. However, investors also see significant potential, believing that PLTR stock's triple-digit growth over the past year may be far from reaching its peak.

“With a potential target price of $100, Palantir could more than double, reflecting its underappreciated potential and substantial market opportunity,” Ford wrote.

Foord cites several similarities between NVDA in 2020 and current PLTR to support this bullish view, such as a unique technology, a huge potential market and the ability to dramatically increase its margins.

“Like NVIDIA, Palantir has been waiting decades for this moment,” Ford argues, noting that PLTR's ability to help companies “build digital assets from a real-world business model standpoint that unleashes the full power of AI. “

Assuming PLTR captures a small share of the estimated $500 billion enterprise software market, it could still reach $11.5 billion in annual revenue by the end of the decade, according to Ford. The investor also believes that PLTR will succeed in growing its operating margin by 60% as revenue grows.

“Yes, it's very bullish, but it's possible,” Ford said “Analysts cannot foresee such a move. They didn't with NVIDIA and they won't with Palantir.”

Investors qualify this optimistic sentiment, however, giving PLTR shares a buy rating. (To see Ford's track record, click here)

Palantir generates mixed opinion on Wall Street, reflected in 4 Buy, 6 Hold and 6 Sell ratings, all consolidating into a Hold consensus view. With a 12-month average price target of $27.67, the stock is projected to decline ~32% over the next year. (See PLTR Stock Forecast)

To get good ideas for trading stocks at attractive valuations, visit TipRanks' Best Stocks to Buy, a tool that aggregates all of TipRank's equity insights.

Disclaimer: The views expressed in this article are solely those of the featured investor. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.