logo
Prediction: 3 Magnificent Stocks That'll Be Worth More Than Nvidia and Palantir by 2035

Prediction: 3 Magnificent Stocks That'll Be Worth More Than Nvidia and Palantir by 2035

Globe and Mail5 days ago
Key Points
Nvidia and Palantir Technologies are the faces of the artificial intelligence (AI) revolution.
Though Nvidia and Palantir have made their shareholders notably richer, both stocks are arguably in a bubble.
Three phenomenal companies have the tools and intangibles needed to leapfrog today's hottest stocks over the coming 10 years.
10 stocks we like better than Nvidia ›
For the better part of the last three years, no trend has been hotter on Wall Street than the rise of artificial intelligence (AI). Giving software and systems the tools to make split-second decisions without human oversight is a game-changer for most industries around the globe.
Though a long list of companies has benefited from the evolution of AI, none are the face of the movement quite like graphics processing unit (GPU) kingpin Nvidia (NASDAQ: NVDA) and AI-driven data-mining specialist Palantir Technologies (NASDAQ: PLTR). Nvidia has gained more than $3.8 trillion in market value since the start of 2023, while Palantir stock has surged by roughly 2,250% over the same span.
Nvidia and Palantir may be in a bubble
Nvidia's claim to fame is its Hopper and Blackwell GPUs, which account for the lion's share of GPUs currently deployed in AI-accelerated data centers. With AI-GPU scarcity persisting, Nvidia has enjoyed a sizable backlog for its hardware and has been able to consistently charge a triple-digit percentage premium for its GPUs, relative to its external competition.
Meanwhile, Palantir has benefited from its two AI-fueled platforms, Gotham and Foundry, being irreplaceable at scale. Federal governments rely on Gotham to support military mission planning and execution, as well as data analytics. As for Foundry, it helps businesses make sense of their data and assists in streamlining their operations. Gotham has played the biggest role in sustaining Palantir's sales growth and pushing the company to recurring profitability.
Despite this overwhelming success, there's a realistic chance that Nvidia and Palantir are both in a bubble.
For starters, every next-big-thing innovation for more than three decades has endured an early innings bubble-bursting event. It takes time for all technologies to mature, and the vast majority of companies deploying AI solutions are nowhere close to having optimized them, as of yet. If an AI bubble forms and bursts, no two companies would arguably be hit harder than Nvidia and Palantir.
Their valuations are, potentially, an even bigger concern. Whereas most industry leaders on the cutting-edge of a next-big-thing technology have topped out at price-to-sales (P/S) ratios of 30 to 40, Palantir is nearing a P/S ratio of almost 121! As for Nvidia, it's approaching a P/S ratio of 29, which is more than double the trailing-12-month P/S multiple of any of its "Magnificent Seven" peers.
If history rhymes and the AI bubble bursts, other brand-name stocks will have an opportunity to leapfrog Nvidia ($4.18 trillion) and Palantir ($356 billion) in the valuation department by 2035. What follows are three magnificent stocks with valuations below both Nvidia and Palantir that can surpass them over the next 10 years.
Alibaba Group: current market cap of $276 billion
One of the more logical candidates to leapfrog Nvidia and Palantir is China-based e-commerce and AI juggernaut Alibaba Group (NYSE: BABA), which is only $80 billion away from Palantir's market cap but a good $3.9 trillion below Nvidia.
Alibaba's foundational operating segment is its e-commerce marketplace. Based on a research report from DBS Treasures, Alibaba's Taobao and Tmall collectively accounted for an estimated 41% of China's gross merchandise value for online retail platforms in 2024. Even though online retail sales generate relatively low margins, China's burgeoning middle class sets Alibaba's e-commerce platforms up for sustained growth.
What's even more intriguing than Alibaba's online retail sales potential is its cloud infrastructure service platforms and artificial intelligence ties. Alibaba Cloud was responsible for one-third of all cloud infrastructure service spending in mainland China during the quarter ended in March, according to Canalys. The incorporation of generative AI solutions has the potential to accelerate and/or sustain double-digit sales growth for this considerably higher-margin segment.
Don't overlook Alibaba's pristine balance sheet, either. It closed out March with $59 billion in cash, cash equivalents, short-term investments, and equity securities, generating roughly $3.8 billion in net cash from its operating activities during the first three months of the year. Perhaps it's no surprise that Alibaba is supporting a healthy share repurchase program and is able to invest aggressively in an assortment of higher-growth and higher-margin innovations.
PayPal Holdings: current market cap of $71 billion
A second magnificent stock with all the tools and intangibles needed to surpass Nvidia's and Palantir's respective market caps over the next 10 years is fintech leader PayPal Holdings (NASDAQ: PYPL). PayPal certainly has the biggest climb, with a current market of "just" $71 billion. But keep in mind that my forecast implies a commensurate decline in the valuations of both Nvidia and Palantir by 2035.
Based on estimates from research and consulting firm Roots Analysis, the global fintech addressable market is projected to grow from $222 billion in 2024 to north of $1.8 trillion by 2035. Though there's growing competition in digital payments, PayPal finds itself in pole position for this sizable global opportunity.
While PayPal's active account growth has left a bit to be desired over the last two years, most of its key performance indicators (KPIs) have been marching in the right direction. Since the end of 2020, total payment volume transacted on PayPal's digital platforms has expanded from $936 billion to an annual run rate of $1.67 trillion, based on its quarter ending in March 2025.
Meanwhile, the average number of payments completed by active accounts over the trailing-12-month period jumped from 40.9 to 59.4 during the same time frame. In other words, active accounts are substantially more engaged than they were a little over four years ago, which is a recipe for gross profit expansion over time.
The icing on the cake for PayPal, beyond its opportunity to expand into underbanked emerging markets, is its hearty capital-return program. PayPal has reduced its outstanding share count by more than 20% over the last decade, which should have a demonstrably positive impact on its earnings per share (EPS).
Intuitive Surgical: current market cap of $184 billion
The third magnificent stock that has the potential to blow past Nvidia and Palantir by 2035 is robotic-assisted surgical systems developer Intuitive Surgical (NASDAQ: ISRG), which currently trails Palantir by about $172 billion and Nvidia by roughly $4 trillion.
The beauty of most healthcare stocks is their highly defensive nature. No matter how well or poorly the U.S. economy and/or stock market are performing, people will still develop ailments and require prescription drugs, medical devices, and preventative services/surgeries. This leads to steady operating cash flow year after year for most healthcare businesses.
On a more company-specific basis, Intuitive Surgical has a vice-like grip on the robotic-assisted surgical market share. The 367 da Vinci surgical systems placed during the first quarter pushed Intuitive Surgical beyond 10,000 system installations this century. While this might not sound like a huge number, the high cost of these systems, coupled with the time it takes to train surgeons to use the da Vinci surgical system, keeps buyers exceptionally loyal to the company.
Furthermore, Intuitive Surgical's revenue breakdown has become more favorable from a margin standpoint over time. During the 2000s, most of its revenue originated from selling its high-priced but costly-to-build da Vinci surgical system. Now, a majority of its sales come from instruments and accessories for procedures and system servicing. These are high-margin sales channels that are allowing EPS to grow at a faster pace than revenue.
The final puzzle piece is that its surgical systems are still just scratching the surface in terms of utility. Moving into thoracic, colorectal, and generalized soft tissue procedures opens new doors that can sustain a double-digit growth rate for perhaps the next 10 years, if not well beyond.
Should you invest $1,000 in Nvidia right now?
Before you buy stock in Nvidia, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Nvidia wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $652,133!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,056,790!*
Now, it's worth noting Stock Advisor's total average return is 1,048% — a market-crushing outperformance compared to 180% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor.
See the 10 stocks »
*Stock Advisor returns as of July 15, 2025
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

U.S. Exhibitors at 2025 CISCE Grow by 15%, Highlighting Strengthened Supply Chain Cooperation
U.S. Exhibitors at 2025 CISCE Grow by 15%, Highlighting Strengthened Supply Chain Cooperation

Cision Canada

time3 hours ago

  • Cision Canada

U.S. Exhibitors at 2025 CISCE Grow by 15%, Highlighting Strengthened Supply Chain Cooperation

BEIJING, July 25, 2025 /CNW/ -- The third China International Supply Chain Expo (CISCE) was held from July 16 through 20 in Beijing, providing a premier platform for global communication and cooperation in supply chain development, and witnessed a 15% increase on the number of U.S. exhibitors compared to last year, reaffirming the position as the largest group of international participants. Michael Hart, Pr esident of AmCham China, praised CISCE for fostering collaboration and innovation across borders. "The Supply Chain Expo has provided a fantastic platform for communication and cooperation," Hart said. "I'm pleased to share that U.S. exhibitors have grown significantly this year, with 60% of them being Fortune Global 500 companies. Additionally, we are excited to welcome NVIDIA, a leader in American technology, making its debut at CISCE." Yu Jianlong, Vice C hairman of the China Council for the Promotion of International Trade (CCPIT), highlighted the importance of the event in advancing bilateral economic ties. "The foundation of China-U.S. relations lies in people-to-people ties," Yu said. "At this critical juncture, Chinese and American businesses are taking concrete actions to strengthen supply chain cooperation, ensuring stable and unimpeded global supply chains." This year also marks AmCham China's first participation at CISCE with its own exhibition booth, working alongside member companies to showcase innovative solutions and foster partnerships. Hart emphasized AmCham China's 2025 Navigator Program, launched during last year's expo, which focuses on cultivating supply chain leadership and collaboration with Chinese hubs. Shandong's Role in Supply Chain Resilience Hart also highlighted Shandong Province as a key player in global supply chain resilience. Since the first U.S. investment in Shandong in 1986, nearly 1,000 American companies have invested in the province, establishing it as a major partner in bilateral trade. "Shandong is one of China's most dynamic provinces, excelling in manufacturing, agriculture, port logistics, and new energy," Hart said. Its strong industrial ecosystem, efficient infrastructure, and skilled workforce have attracted many AmCham China member companies to establish production bases and regional hubs. CISCE continues to serve as a vital platform for global supply chain cooperation, providing opportunities for enterprises to explore new collaborations and drive economic growth. The expo showcases breakthroughs in supply chain innovation and fostering stronger partnerships across borders. For more highlights of the event, please visit

IBM Boosts Forecast on AI and Red Hat
IBM Boosts Forecast on AI and Red Hat

Globe and Mail

time5 hours ago

  • Globe and Mail

IBM Boosts Forecast on AI and Red Hat

International Business Machines (NYSE:IBM) reported 2Q 2025 earnings on July 23, 2025, delivering $17 billion in revenue and $4.8 billion in first-half free cash flow, driven by standout software and infrastructure gains. The company raised its full-year free cash flow outlook to above $13.5 billion and affirmed revenue growth guidance above 5%, supported by double-digit Red Hat growth, robust automation, and surging AI-related bookings. Key insights below highlight IBM's accelerating software momentum, transformation in productivity, and expanding AI footprint. Red Hat and automation fuel IBM software acceleration Red Hat contributed 3.5 percentage points of organic software growth, while automation grew 15% in the first half of 2025, and HashiCorp delivered a strong initial performance following its acquisition. OpenShift achieved $1.7 billion in annual recurring revenue (ARR), and Red Hat's virtualization pipeline grew by over $300 million in total bookings through the first three quarters. "OpenShift growing revenue more than 20% with ARR now at $1.7 billion. Automation grew 14%, with HashiCorp off to a strong start … We accelerated our Red Hat performance first quarter, second quarter by an incremental point, now growing about 14.5% … our pipeline in the second half is 3x last year across our entire automation portfolio with regards to HashiCorp." -- Jim Kavanaugh, Senior Vice President and Chief Financial Officer This sustained outperformance in hybrid cloud and automation positions IBM to deliver near-double-digit software revenue growth for FY2025 at constant currency, non-GAAP, driving a favorable long-term revenue mix shift and expanding recurring revenue base. IBM productivity transformation expands margins and financial flexibility IBM expanded its operating gross profit margin by 230 basis points, reflecting disciplined execution and productivity initiatives including embedding AI into workflows and optimizing the supply chain by moving distributed infrastructure manufacturing to a strategic partner. IBM exited 2024 with $3.5 billion in annual run rate savings and now expects to reach $4.5 billion by the end of 2025, fueling further margin expansion and cash flow conversion. "We are taking up the year on our productivity initiatives. We exited last year, we talked about $3.5 billion of productivity that we've been able to fundamentally drive out of this business … that's given us guidance and confidence to raise that to $4.5 billion. That flows to operating margin. We're taking our operating margins up from a half a point to now roughly a point … and then we're flowing that all the way down through the cash flow. High quality, sustainable cash flow generation." -- Jim Kavanaugh, Senior Vice President and Chief Financial Officer Escalating productivity-driven savings provide IBM with headroom for strategic M&A and ongoing innovation investment. AI portfolio and ecosystem drive differentiated growth at scale IBM's cumulative Gen AI book of business surpassed $7.5 billion since inception, with AI now surpassing 10% of consulting revenue at a more than three-point margin premium compared to non-AI work. Over 150 prebuilt agents and deep partnerships with Oracle, Amazon Web Services (AWS), Salesforce, and others are embedding Watson x solutions across customer workflows, while unique offerings like Code Assistant for z and the newly launched z17 mainframe further strengthen IBM's competitive position in scalable enterprise AI. "Our Gen AI book of business now stands at over $7.5 billion inception to date, with momentum accelerating quarter over quarter. We are seeing strong demand for our AI agents and assistants, REL AI, Granite Models, as well as an accelerating need for our consulting services to deploy AI. Just last week, IBM was recognized as an emerging leader in the first-ever Gartner emerging market quadrant for Gen AI consulting and implementation services." -- Arvind Krishna, Chairman, President, and Chief Executive Officer IBM's leadership in enterprise-scale AI and its partner ecosystem create a powerful flywheel effect, deepening client engagement and underpinning the company's long-term secular growth thesis in AI-powered automation and hybrid cloud environments. Looking Ahead For the full year, IBM reaffirmed constant currency revenue growth of 5% plus (non-GAAP) and raised free cash flow guidance above $13.5 billion. Management expects software to approach double-digit revenue growth, with Red Hat growth in the mid-teens and low-single-digit gains in transaction processing are expected as the z17 mainframe cycle accelerates. Operating pre-tax margin is now expected to expand by about one point for the full year, and IBM is comfortable with consensus expectations for revenue and profit. Where to invest $1,000 right now When our analyst team has a stock tip, it can pay to listen. After all, Stock Advisor's total average return is 1,037%* — a market-crushing outperformance compared to 182% for the S&P 500. They just revealed what they believe are the 10 best stocks for investors to buy right now, available when you join Stock Advisor. See the stocks » *Stock Advisor returns as of July 21, 2025 JesterAI is a Foolish AI, based on a variety of Large Language Models (LLMs) and proprietary Motley Fool systems. All articles published by JesterAI are reviewed by our editorial team, and The Motley Fool takes ultimate responsibility for the content of this article. JesterAI cannot own stocks and so it has no positions in any stocks mentioned. The Motley Fool has positions in and recommends Amazon, International Business Machines, and Oracle. The Motley Fool recommends Gartner. The Motley Fool has a disclosure policy.

Why C3.ai Stock Plummeted Today
Why C3.ai Stock Plummeted Today

Globe and Mail

time6 hours ago

  • Globe and Mail

Why C3.ai Stock Plummeted Today

Key Points stock sank today after the company announced that it had started looking for its next CEO. Tom Siebel founded and has been its CEO ever since, but he is stepping back from the role due to health reasons. Wedbush Morgan thinks that Siebel's exit from the CEO position increases the chances that will be acquired. 10 stocks we like better than › (NYSE: AI) stock got hit with big sell-offs today after the company announced a major leadership change. The company's share price ended the daily session down 10.8% announced today that CEO Tom Siebel would be stepping down and that the company was in the process of looking for its next chief executive. With today's pullback, the company's stock is down roughly 24.5% across 2025's trading. stock sank following news of Siebel's exit published a press release today announcing that it had begun looking for a successor for CEO Tom Siebel. Due to health reasons, Siebel will be stepping down. Siebel founded the company in 2009, but he was diagnosed with an autoimmune disease earlier this year and has been dealing with visual impairment issues that are causing him to step down from the company's head leadership role. What's next for Wedbush Morgan published new coverage on today and stated that Siebel stepping down from the CEO role was a net negative and that the leadership transition increases the chances that the company will be acquired within the next three to 12 months. On the other hand, Wedbush maintained an outperform rating on the stock and kept a one-year price target of $35 per share. The price target implies upside of roughly 35% compared to the stock's valuation at today's market close. Despite strong valuation tailwinds for many artificial intelligence (AI) stocks this year, has seen significant pullbacks across 2025's trading. Sales increased roughly 36% year over year to hit $108.7 million in the fourth quarter of the company's last fiscal year, which ended April 30, but performance for its shares has lagged behind other big AI names due to profitability concerns. Should you invest $1,000 in right now? Before you buy stock in consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $634,627!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,046,799!* Now, it's worth noting Stock Advisor's total average return is 1,037% — a market-crushing outperformance compared to 182% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. *Stock Advisor returns as of July 21, 2025

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store