Palantir (NYSE:PLTR) stock opened higher by almost 8% today, although shares have since given up most their gains. As of this writing, PLTR is up about 2%.
The push in Palantir’s opening price this morning is mainly attributable to a sympathy play on Nvidia’s (NASDAQ:NVDA) historic first-quarter earnings. Yesterday, the semiconductor giant reported revenue of $7.19 billion, down 13% year-over-year (YOY) but beating the analyst estimate for $6.52 billion. Adjusted EPS of $1.09 also beat the analyst estimate for 92 cents.
However, guidance for Q2 is what really set NVDA stock on fire, as well as other artificial intelligence (AI) and machine learning (ML) beneficiaries like PLTR stock. Nvidia guided for Q2 revenue of $11 billion, plus or minus 2%. That blew away the analyst estimate for $7.15 billion by an astonishing 53.8%.
“A trillion dollars of installed global data center infrastructure will transition from general purpose to accelerated computing as companies race to apply generative AI into every product, service and business process,” said Nvidia founder and CEO Jensen Huang.
PLTR Stock Alert: 2 Key Reasons Palantir Is Surging Higher
Palantir has received several accolades for its progress in AI. Last year, the company was named a leader in AI/ML platforms by research and advisory firm Forrester. In 2022, Palantir was also ranked as the number one AI software platform based on 2021 market share and revenue, according to a report from the International Data Corporation (IDC).
This morning, Palantir also announced that it had formed a partnership with the Ministry of Digital Transformation of Ukraine. Through the partnership, Palantir will help Ukraine reconstruct its digital infrastructure which was hampered by the Russian invasion. Services will include improving the efficiency of electronic public services and working with the Armed Forces of Ukraine to implement digital and innovative projects.
George Dubynskyi, Ukraine’s Deputy Minister of Digital Transformation, said the following about the partnership:
“Since Palantir is a fairly versatile intelligence instrument, we observe extremely high interest in its implementation. By developing a strong recovery plan, together we will explore the opportunity of introducing Palantir as one of the main tools of digital reconstruction to analyze data related to infrastructure and urban planning.”
Shares of PLTR stock are now up more than 90% year-to-date (YTD). With the AI-wave in full effect, Palantir seems to be a major beneficiary.
On the date of publication, Eddie Pan held a LONG position in NVDA. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.