TLDR
- Nvidia reported $46.7 billion in Q2 revenue, up 56% year-over-year, with 92% market share in data center GPUs
- Palantir achieved 48% revenue growth in Q2 2025, topping $1 billion in quarterly sales for the first time
- Alphabet posted $96.4 billion in Q2 revenue with 14% growth, maintaining dominance in digital advertising
- Nvidia trades at 39.5 times forward earnings while Palantir trades at 243 times forward earnings
- All three companies are investing heavily in AI infrastructure and returning capital to shareholders
Growth stocks continue to attract investor attention as companies like Nvidia, Palantir, and Alphabet deliver strong financial results. These tech giants are positioned to benefit from the ongoing AI revolution and digital transformation trends.
Nvidia maintains its commanding position in the artificial intelligence infrastructure market. The company holds nearly 92% of the data center GPU market share. In its fiscal 2026 second quarter ending July 27, Nvidia reported revenues of $46.7 billion, representing a 56% increase year-over-year.
The chipmaker’s gross margin reached 72.4% under generally accepted accounting principles. Management expects fiscal third-quarter revenue to hit $54 billion, plus or minus 2%. This growth comes from increasing demand for Blackwell-architecture GPUs.
AI Infrastructure Investment Wave
Nvidia estimates that between $3 trillion and $4 trillion will be invested in AI infrastructure by 2030. For calendar 2025, the company expects hyperscalers and enterprises to invest nearly $600 billion in data center infrastructure. This represents almost double the 2023 investment amount.
The company’s proprietary Compute Unified Device Architecture software stack optimizes hardware for specific AI workloads. CUDA has become the industry standard, used by over 5 million developers worldwide.
Nvidia’s networking solutions generated record quarterly revenue of $7.3 billion. Demand came from Spectrum-X Ethernet, InfiniBand, and NVLink as customers build massive AI clusters. Networking now represents a $10 billion-plus annualized revenue business for the company.
Despite U.S. restrictions on exporting high-end GPUs to China, Nvidia is adapting. The company is creating modified versions of its Blackwell chips that comply with new regulations. It estimates the Chinese market opportunity at nearly $50 billion in 2025.
Palantir Technologies delivered exceptional growth in the second quarter of 2025. Revenue increased 48% from the previous year as the company exceeded $1 billion in quarterly sales for the first time. U.S. government revenue grew 53% to $426 million while U.S. commercial revenue surged 93% to $306 million.
The data analytics company closed 157 deals worth at least $1 million in Q2. This included 66 deals valued at $5 million or more and 42 deals worth $10 million or more. Customer count expanded from 593 in Q2 2024 to 849 by Q2 2025.
Artificial Intelligence Platform Drives Growth
Palantir’s Artificial Intelligence Platform launched in 2023 has transformed the business. AIP uses generative artificial intelligence to provide actionable insights from massive databases within hours. The platform made Palantir accessible to commercial businesses beyond its traditional military and intelligence clients.
Adjusted operating income reached $464 million in Q2 2025 with a 46% margin. This compares to $254 million and 37% margin in Q2 2024. The consistent improvement demonstrates the scalability of Palantir’s business model.
Alphabet reported second-quarter revenues of $96.4 billion, up 14% year-over-year. Operating income reached $31.2 billion while the company maintained $95 billion in cash and securities. Google Search continues providing more than half of total revenues with AI-enhanced features improving user engagement.
YouTube generated nearly $9.8 billion in advertising revenues during the quarter. Google Cloud revenues increased 32% to $13.6 billion, capturing 13% of global cloud infrastructure spending. The cloud division benefited from growing demand for AI infrastructure and generative AI services.
Valuation concerns persist across these growth stocks. Nvidia trades at about 39.5 times expected forward earnings while Palantir commands 243 times forward earnings. Alphabet trades at 18.3 times forward earnings, below its five-year average of 23.9.
All three companies returned substantial capital to shareholders through buybacks and dividends in their recent quarters. Palantir closed 42 deals valued at $10 million or more in Q2 2025.
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