Two AI-focused equities worth investing and maintaining for the upcoming ten years:
**Nvidia and Palantir Technologies: Capitalizing on the AI Revolution**
The global AI market is set to experience significant growth over the next decade, with the AI software platforms market forecasted to generate annual revenue of $153 billion in 2028, and the AI chip market estimated to be worth $846 billion in 2035. This growth presents lucrative opportunities for companies at the forefront of AI technology, and two such companies, Nvidia and Palantir Technologies, are well-positioned to capitalize on these trends.
**Nvidia: Leading the AI Hardware Revolution**
Nvidia, a dominant player in the AI chip market, has seen its stock soar due to the surge in AI chip sales, particularly its advanced AI chips targeting hyperscalers and sovereign AI data center initiatives in regions including the Middle East. The global AI chip market is projected to grow at a CAGR of around 29.3% from 2025 to 2035, reaching approximately $837 billion by 2035. Nvidia's strategic positioning, technological leadership, and broad adoption of its Blackwell chip architecture position it well to capture a large share of this expanding market.
Nvidia's ongoing expansion into sovereign AI and international deals indicate diversification of revenue streams and resilience, reinforcing its strong growth potential. In addition, neural processors, a niche AI hardware sector Nvidia is involved in, are expected to grow at a CAGR of 19.1% from 2025 to 2035, indicating steady growth in edge AI applications, which Nvidia is also targeting through specialized chips.
**Palantir Technologies: Software Solutions for AI-Driven Decision Making**
While Palantir Technologies is not directly involved in AI chip manufacturing, it is a leading player in the AI software and data analytics platforms space. The extensive growth in AI adoption across industries and data-centric AI applications forecasted bodes well for companies like Palantir that provide AI-driven software solutions and data intelligence platforms.
The broader AI software and data intelligence markets are expected to expand rapidly, supported by increasing real-time data processing and IoT integration, areas where Palantir operates. Palantir's revenue growth rate has increased due to growth in its customer base and spending by existing customers.
**Summary**
In summary, Nvidia's long-term growth potential in the AI market is robust and driven by its leading hardware technologies and strategic global expansion, making it a cornerstone for AI infrastructure over the next decade. Meanwhile, Palantir's growth will depend on scaling its AI software offerings and maintaining government and enterprise client traction, which is promising but different and complementary to Nvidia’s hardware focus.
Both companies are well-positioned to capitalize on the accelerating AI market trends, though Nvidia’s growth is more directly tied to the booming AI chip market, while Palantir’s depends on the broader AI application and data intelligence markets expanding. Nvidia ended 2024 with 92% of the data center graphics processing unit (GPU) market under its control, and it is poised for growth due to emerging opportunities in enterprise AI applications, automotive, digital twins, and cloud gaming.
Investing in Nvidia and Palantir Technologies could prove to be lucrative in the AI revolution, given their prominent positions in the AI chip and AI software markets, respectively. The projected growth of the AI chip market, worth $846 billion by 2035, and the AI software platforms market, generating $153 billion in 2028, provides substantial opportunities for these companies. Nvidia, with its leadership in AI hardware technologies and global expansion, stands at the forefront of AI infrastructure evolution, while Palantir, offering AI-driven software solutions and data intelligence platforms, is poised to benefit from the expanding AI application and data intelligence markets.
