“The Nvidia moment is probably near,” says top investor about Palantir shares

Hindsight, as they say, is 20/20. While it is easy to analyze the past, predicting the future is far more difficult. That couldn't be truer Nvidia (NASDAQ:NVDA)Countless investors are angry that they didn't recognize the AI ​​unicorn before it shot into the stratosphere.

Could Palantir (NYSE:PLTR) Will it be the next AI-inspired growth story to follow in Nvidia's footsteps? Top investor James Foord believes this could be the case.

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

Foord acknowledges that opinions on Palantir are divided, noting that traditional metrics may actually suggest that the big data analytics company is overvalued. However, the investor also sees significant potential and believes that PLTR stock's triple-digit growth over the past year may be far from peaking.

“With a potential price target of $100, Palantir could more than double, reflecting its unappreciated potential and significant market opportunity,” writes Foord.

Foord describes a number of similarities between NVDA in 2020 and PLTR in the present to support this optimistic outlook, such as unique technology, a huge potential market and the ability to dramatically increase its margins.

“Like NVIDIA, Palantir has been waiting decades for this moment,” argues Foord, adding that PLTR’s ability to help organizations “create digital assets from real-world business models” positions it perfectly to harness the full power of AI to release.”

Assuming PLTR captures even a small portion of the estimated $500 billion enterprise software market, Foord said, that could still result in annual revenue of $11.5 billion by the second half of the decade. The investor also believes that PLTR will manage to increase its operating margins to 60% as sales increase.

“Yes, that is very optimistic, but it is possible,” says Foord. “Analysts cannot predict such movements. That wasn’t the case with NVIDIA and that won’t be the case with Palantir.”

However, the investor puts this optimistic sentiment into perspective by giving PLTR stock a “Buy” rating. (To view Foord’s track record, click here)

Palantir is sparking mixed opinions on Wall Street, reflected in 4 Buy, 6 Hold and 6 Sell ratings, all of which add up to a Hold consensus opinion. With a 12-month average price target of $27.67, the stock is expected to fall about 32% over the next year. (See PLTR stock forecast)

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Disclaimer: The opinions expressed in this article are solely those of the featured investor. The content is for informational purposes only. It is very important to do your own analysis before investing.