Nvidia and Palantir have served a warning of almost $ 11 billion to Wall Street – but do investors pay attention?

• Artificial Intelligence (AI) worked software and systems can be a game changer for most industries around the world.

• Nvidia’s graphic processing units and Palantir’s AI-inspired gotham and foundry platforms have made these two titans the face of the AI revolution.

• Combined base were only two total purchases made by Nvidia and Palantir Insiders, who cover for almost five years.

• 10 shares that we like more than Nvidia ›

For most of the past three years, no trend has received more attention on Wall Street than the rise of artificial intelligence (AI). The possibility of AI-Empowered software and systems to make fraction-second decisions without human supervision is a game changer for almost all industries around the world.

Although a laundry list of companies in and out of the technology sector has benefited from the hype around AI, no two shares have been the face of this technological revolution such as semiconductor Titan Nvidia (Nasdaq: NVDA) and dataining specialist Palantir Technologies (Nasdaq: PLTR). Since the end of 2022, the shares of NVIDIA has been won more than 1,000% and a value of $ 4 trillion, while the Palantir shares have risen a cool 2,110% and has added around $ 320 billion to market capitalization.

Although a fortunes have been done to keep shares of these top novators, both companies have also served a warning of almost $ 11 billion in Wall Street that investors would be foolish (with a small F) to ignore.

But before we can dig in the ominous warning from Nvidia and Palantir to Wall Street, a foundation must be laid that describes how these two companies have become the stars of the AI revolution.

Nvidia that is the largest listed company that did not happen by accident. It is a reflection of its AI-graphic processing units (GPUs) that is thoroughly dominant in high-quality data centers. Orders for his hopper and successor Blackwell GPUs are left behind, so that Nvidia can charge 100% to 300% premium for its GPUs everywhere compared to its direct competitors.

The aggressive innovation cycle of CEO Jensen Huang has also enthusiastic about Wall Street and investors. Huang spends generously on innovation to market a new advanced chip every year. After Blackwell in 2024, Blackwell Ultra (2025), Vera Rubin (2026) and Vera Rubin Ultra (2027) are, if everything goes according to plan. No direct competitors have come close to surpassing the AI GPUs of Nvidia in calculation potential, and this innovation cycle will probably keep it that way in the near future.

Even the Cuda software platform from Nvidia has played a key role in growth. Although most investors rightly regard the hardware of the company as the basis, Cuda has acted as the glue that binds everything together. This is the software platform that developers use to maximize the calculation potential of their Nvidia chips and to train large language models. It is responsible to keep customers loyal to the NVIDIA ECO system.

As far as Palantir is concerned, the claim on fame was the unique, AI-inspired operational platforms, Gotham and Foundry. The first helps the plan of the federal government and the implementation of military missions, and the collection of data. In the meantime, Foundry is a business-oriented software-as-a-service platform that helps companies to streamline their activities. There are no large -scale competitors who offer the same services as Palantir.

Investors also started to appreciate the ideal positioning of Palantir. Unified Republican governments spend historically aggressive on the defense, which fits in with Palantir’s efforts to land government contracts of several years for Gotham. As far as the foundry is concerned, it is still getting wet and can result in sustainable double-digit growth because it adds new business customers.

With a better understanding of how Nvidia and Palantir became so consistent for the AI revolution and the health of Wall Street, let’s dig in the aforementioned warning that these companies have issued, which have completely flown under the radar of investors.

Although there are a number of unique concerns that are linked to artificial intelligence, for example, history that shows that every trend of the following respects since the arrival of the internet in the mid-nineties has navigated its way through a bubble buildings Misschien, the most lit warning and Palantir.

When managers and board members of public companies buy or sell shares, including option contracts, they must submit form 4 to the Securities and Exchange Commission. With this submission, investors can buy insider and sell activities.

During the period of the trail-five year (keep in mind that Palantir only became a public company):

Here is the reservation about the sale of insider: it is not necessarily bad news. Because managers often receive the majority of their compensation in the form of shares and options, the sale of shares can be done to meet federal and/or national tax obligations or to ensure that options contracts do not lapse. For example, the sales activity of Nvidia CEO Jensen Huang is probably based on tax.

The point is that there are quite a few reasons for managers and board members to sell shares in their respective companies, and it is not always an indication of problems.

HoweverThere is only one reason why insiders buy shares of the shares of their own company: they believe it will increase in value.

The last time that an insider bought shares from their own shares in Nvidia was when the children of CFO Colette Kress each bought 100 shares on December 3, 2020. Meanwhile, Palantir has seen exactly one insider purchase in his entire anniversary as a public company. On May 8, 2025, former Chief Accounting Officer Heather Pileishek bought 10,000 shares.

In what is coming for five years, there has been a total of two insider purchases between Nvidia and Palantir, combined! For comparison, there is more than $ 10.8 billion in selling network -selling activities.

The message here is very clear: if business leaders and board members are not willing to buy the shares of their own company, why would investors not?

Palantir ended last week with a price sale (p/s) ratio of approximately 114, so that the level is drunk the level at which other MegaCap shares are historically coordinated while they have gone at the front of a trend of the next big things. With regard to Nvidia, the P/S ratio is back above 27 at a backlog of 12 months. Neither Palantir nor Nvidia are appreciated at levels that have been historically sustainable for longer periods – and their respective insider purchases And Sales activity seems to display this.

The question is: pay attention to investors?

Consider this: Before you buy shares in Nvidia:

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Sean Williams has no position in one of the aforementioned shares. The Motley Fool has positions and recommends Nvidia and Palantir Technologies. The Motley Fool has a disclosure policy.

Nvidia and Palantir have served a warning of almost $ 11 billion to Wall Street – but do investors pay attention? was originally published by the Motley Fool