TLDR
- Nvidia posted $46.7 billion in Q2 2026 revenue, up 56% year-over-year, driven by AI infrastructure demand
- The company’s new Blackwell architecture systems are 10x more power efficient than previous Hopper systems
- Palantir hit $1 billion quarterly revenue for the first time, growing 48% year-over-year in Q2 2025
- Palantir secured a 10-year U.S. Army contract worth up to $10 billion for enterprise services
- Both companies are positioned to benefit from projected global AI infrastructure spending of $3-4 trillion by 2030
Two tech giants posted impressive quarterly results as global demand for artificial intelligence infrastructure continues to drive market growth. Nvidia and Palantir both exceeded revenue expectations while securing major contracts and expanding their market presence.
Nvidia delivered $46.7 billion in revenue for the second quarter of fiscal 2026, marking a 56% increase from the previous year. The chip maker’s data center division generated $41.1 billion in revenue, representing the bulk of company earnings.
The company’s gross margin reached 72.4% while operating income jumped 53% year-over-year to $28.4 billion. Nvidia returned $10 billion to shareholders through stock buybacks and dividends during the quarter.
Nvidia’s new Blackwell architecture systems have been a key driver of recent growth. These GB300 NVL72 systems offer 10 times better power efficiency compared to the previous Hopper architecture.
Cloud service providers and enterprises are adopting Blackwell systems to address power limitations and cost challenges in data centers. The improved efficiency allows companies to train and run next-generation AI models more effectively.
The company’s CUDA software platform now serves nearly 5 million developers and 40,000 companies worldwide. This extensive user base creates customer loyalty and makes it difficult for competitors to gain market share.
Government Contracts Drive Palantir Success
Palantir Technologies reached $1 billion in quarterly revenue for the first time in company history during the second quarter of 2025. The enterprise software company posted 48% year-over-year growth.
The company’s adjusted operating margin rose to 46%, exceeding guidance expectations by nearly 300 basis points. Free cash flow reached $569 million, representing a 57% margin.
Palantir’s U.S. commercial segment showed strong performance with 93% year-over-year growth to $306 million. The growth reflects increased adoption of the company’s Artificial Intelligence Platform among private sector clients.
The U.S. Army awarded Palantir a 10-year enterprise contract worth up to $10 billion. This long-term agreement provides revenue visibility and demonstrates government confidence in Palantir’s technology.
Palantir’s AI platform uses an ontology-based architecture that maps digital assets to physical assets. This approach integrates large language models with the company’s existing framework to deliver more accurate results.
Market Projections and Future Outlook
Nvidia expects global AI infrastructure spending to reach $3 trillion to $4 trillion by 2030. This projection includes investments in training compute, inference systems, sovereign AI projects, enterprise AI, and robotics infrastructure.
Global corporate spending on data center infrastructure is projected to exceed $600 billion in 2025, nearly double the 2023 figure. Both Nvidia and Palantir are positioned to capture portions of this expanding market.
Palantir maintains a net dollar retention rate of 128%, indicating existing customers are increasing their spending on company services. The metric suggests strong customer satisfaction and platform stickiness.
Nvidia continues developing its next-generation Rubin architecture following the Blackwell rollout. The company’s rapid innovation cycle helps maintain its competitive advantage in the AI chip market.
Both companies hold strong cash positions with Nvidia authorizing an additional $60 billion for share repurchases and Palantir maintaining $6 billion in available funds. These financial resources support continued research and development investments.
Stay Ahead of the Market with Benzinga Pro!
Want to trade like a pro? Benzinga Pro gives you the edge you need in today's fast-paced markets. Get real-time news, exclusive insights, and powerful tools trusted by professional traders:
- Breaking market-moving stories before they hit mainstream media
- Live audio squawk for hands-free market updates
- Advanced stock scanner to spot promising trades
- Expert trade ideas and on-demand support
