Investors have an opportunity to buy and hold quality growth stocks amid the ongoing selloff in 2025. Today, fundamentally strong companies such as Palantir (PLTR) and Nvidia (NVDA) are trading significantly below their all-time highs, making them attractive to growth investors.
According to a report from Barron’s, despite a market selloff triggered by President Donald Trump’s tariff policies, Wedbush analyst Dan Ives remains “firmly bullish” on technology stocks, predicting they will reach new all-time highs in the second half of 2025.
Ives recommends buying beaten-down names like Nvidia, Apple (AAPL), Tesla (TSLA), Microsoft (MSFT), and Palantir. These companies have struggled this year after previously gaining during the initial AI boom.
While acknowledging that Trump’s trade policies are “unnerving” to growth investors, Ives maintains his long-term view that the U.S. is in the early stages of an AI revolution. He anticipates a $2 trillion AI capital spending surge from major tech companies will eventually stabilize the market.
The report stated that Ives admits he “misjudged the market reaction to the Trump Policy Bazooka,” but emphasizes his stock calls are based on 1- to 3-year horizons, not short-term performance.
Is Palantir Stock a Good Buy Right Now?
Palantir Technologies delivered exceptional results in Q4, demonstrating remarkable momentum in the AI revolution. Revenue grew 36% year-over-year to $828 million, exceeding guidance by over 900 basis points.
This performance was fueled by strength in Palantir’s U.S. business, which grew 52% year-over-year, with U.S. commercial revenue surging 64% and U.S. government revenue increasing 45%.
Palantir’s Artificial Intelligence Platform (AIP) continues to be the primary growth driver, enabling organizations to transform raw AI capabilities into measurable business value. CEO Alex Karp emphasized that Palantir’s long-term investment in “ontology” — what allows AI to interact effectively with enterprise systems — has been the “secret to our meteoric rise” as companies seek to operationalize large language models in production environments.
Palantir achieved record profitability with adjusted operating margin expanding to 45%, the highest in company history, while generating $517 million in adjusted free cash flow (63% margin).
Palantir closed $1.8 billion in total contract value during Q4, a 56% year-over-year increase, including 32 deals worth $10 million or more. Customer count grew 43% year-over-year to 711, with U.S. commercial customers increasing 73% to 382.
Looking forward, Palantir guided to full-year 2025 revenue of approximately $3.75 billion, representing 31% year-over-year growth, with U.S. commercial revenue expected to exceed $1.08 billion (54% growth).
CTO Shyam Sankar highlighted that while other companies focus on AI model supply, Palantir is transforming AI into "a measurable stream of high-value finished goods and services.”
Out of the 19 analysts covering Palantir, three recommend “Strong Buy,” 11 recommend “Hold,” one recommends “Moderate Sell,” and four recommend “Strong Sell.” The average target price for PLTR stock is $85.11, similar to the current trading price.
Is Nvidia Stock a Good Buy Right Now?
Nvidia also delivered exceptional financial results for the fourth quarter of its fiscal 2025, with revenue reaching $39.3 billion, up 78% year-over-year and 12% sequentially. It reported full-year revenue of $130.5 billion, representing a 114% growth from the previous year, driven primarily by unprecedented demand for AI compute solutions.
Nvidia’s data center segment, which accounts for approximately 88% of total revenue, grew 93% year-over-year to $35.6 billion in Q4. Blackwell, Nvidia’s latest GPU architecture, contributed $11 billion in revenue during its first quarter of availability — the fastest product ramp in the company’s history.
Nvidia’s gross margins temporarily declined to 73.5% (non-GAAP) in Q4 due to the Blackwell ramp, with expectations to remain in the low-70% range during Q1 before returning to the mid-70% range later in the fiscal year. The chip maker prioritizes delivery speed over cost optimization during the initial production ramp.
The company plans to introduce Blackwell Ultra in the second half of 2025, followed by the Vera Rubin architecture. Huang expressed confidence in sustained demand for its product portfolio, citing continued AI infrastructure build-out globally and the transition of software development toward AI-based approaches across all industries.
Analysts expect Nvidia to increase adjusted earnings from $2.99 per share in fiscal 2025 to $5.77 per share in fiscal 2027.
Out of the 44 analysts covering Nvidia, 38 recommend “Strong Buy,” two recommend “Moderate Buy,” and four recommend “Hold.” The average target price for NVDA stock is $177.59, over 50% above the current trading price.
The Bottom Line
Given Nvidia’s lower valuation metrics and significant upside potential, the semiconductor stock is a much better investment than Palantir in March 2025.
On the date of publication, Aditya Raghunath did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
