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 Mail20-07-2025
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

2 Top Stocks That Could Dominate the Rest of 2025
2 Top Stocks That Could Dominate the Rest of 2025

Globe and Mail

time14 minutes ago

  • Globe and Mail

2 Top Stocks That Could Dominate the Rest of 2025

Key Points Nvidia's long-term growth opportunity might be bigger than anyone can imagine. Wall Street continues to underestimate Google's AI technology and competitive position in search. 10 stocks we like better than Nvidia › The markets are still reaching new highs in the middle of the year. The Nasdaq Composite is currently up 9.1% year to date at the time of writing. In the aftermath of the market sell-off earlier this year, two top tech stocks asserted their dominance in the second quarter. Since April 1, Nvidia (NASDAQ: NVDA) shares are up 57%, while shares of Alphabet (NASDAQ: GOOGL)(NASDAQ: GOOG) are up 22%. Here's why these stocks could outperform for the rest of 2025 and remain rewarding investments for the long term. 1. Nvidia Nvidia is providing mission-critical technology to power the revolution in artificial intelligence (AI). It focuses on developing graphics processing units (GPUs), which were originally designed for graphics-intensive software like video games, and are now being used by the most powerful supercomputers. The company's market cap is now over $4 trillion, making it the most valuable company in the world. Nvidia controls around 90% of the data center GPU market. Its hardware is found in all the leading data centers and used by leading AI researchers like OpenAI, and these customers continue to pour billions into new chips. Last year, revenue doubled to $131 billion, and the current Wall Street consensus forecast has that reaching $200 billion this year. All signs point to Nvidia's revenue continuing to grow into the hundreds of billions of dollars over the next several years, as the company's addressable market continues to expand. For example, nations around the world are building their own sovereign AI infrastructure to be less dependent on foreign AI models that weren't trained on their own languages and cultures. Nvidia CEO Jensen Huang says this is a $1.5 trillion opportunity. Because there's no substitute for Nvidia's ultrapowerful GPUs, the company stands to generate substantial wealth for long-term investors. On top of the sovereign AI opportunity, Nvidia also should benefit from growth in robotics and autonomous vehicles. Huang sees the potential for robots to be the next multitrillion-dollar industry. If you didn't buy shares during the stock's recent dip, you shouldn't feel you missed out. It's still trading at a reasonable forward earnings multiple of 40; this is within its trading range over the last three years. Long-term, the stock still offers substantial upside as it capitalizes on the global investment pouring into AI from every industry. 2. Alphabet (Google) Alphabet has a strong competitive moat based on billions of people who use Gmail, YouTube, Search, and its other services every day. The company reported another stellar earnings report for the second quarter, beating expectations, and showing why it's a leading AI company to bet on for the long term. The large number of people who use Google services continued to fuel strong growth in advertising revenue in the second quarter. Alphabet said total revenue grew 14% year over year, with net income surging 19%, and earnings per share up 22%. Solid growth in Google Search revenue eased fears that competing AI models from xAI and OpenAI are hurting Google's core business. Search revenue hit a record $54 billion, up 12% year over year. This growth indicates healthy advertising demand, as users engage with Google's AI Overviews feature, which puts a convenient summary at the top of a search query. Another key indicator of Google's competitive position is strong growth in the cloud business. Google Cloud has been gaining share in a $348 billion cloud market, according to Synergy Research. Revenue hit $13.6 billion in Q2, up 32% year over year. Google Cloud continues to show impressive margin improvements, with operating income increasing from $1.2 billion in Q2 2024 to $2.8 billion in the recent quarter. These results indicate that Alphabet stock is undervalued. Despite prospects for double-digit earnings growth in the coming years, you can buy the stock at a forward P/E of just 20, which looks like a steal for this Magnificent Seven company. The stock seems in the process of being revalued by the market and might be trading at a higher P/E entering 2026, so it may outperform market averages. 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 $636,628!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,063,471!* Now, it's worth noting Stock Advisor's total average return is 1,041% — a market-crushing outperformance compared to 183% 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 28, 2025

Intellistake Technologies Corp. Appoints Shelly Murphy, DesTechAZ Co-Founder with Steve Wozniak, to Advisory Board to Propel Growth in Decentralized Artificial Intelligence and Digital Currencies
Intellistake Technologies Corp. Appoints Shelly Murphy, DesTechAZ Co-Founder with Steve Wozniak, to Advisory Board to Propel Growth in Decentralized Artificial Intelligence and Digital Currencies

Globe and Mail

time14 minutes ago

  • Globe and Mail

Intellistake Technologies Corp. Appoints Shelly Murphy, DesTechAZ Co-Founder with Steve Wozniak, to Advisory Board to Propel Growth in Decentralized Artificial Intelligence and Digital Currencies

VANCOUVER, BC, July 29, 2025 /CNW/ - Intellistake Technologies Corp. (CSE: ISTK) (OTC: ISTKF) (FSE: E41) (" Intellistake" or the" Company") is pleased to announce the appointment of Shelly Murphy to its Advisory Board. A trailblazer in technology, education, and finance, Murphy will provide strategic guidance to support the Company's change of business to a technology company focused on decentralized artificial intelligence (" AI") and digital currencies.

Imagen Network Integrates Grok Framework to Enhance Feed Logic and Adaptive User Experience
Imagen Network Integrates Grok Framework to Enhance Feed Logic and Adaptive User Experience

Globe and Mail

time2 hours ago

  • Globe and Mail

Imagen Network Integrates Grok Framework to Enhance Feed Logic and Adaptive User Experience

Grok-powered enhancements boost AI social curation and personalize decentralized peer interactions. Singapore, Singapore--(Newsfile Corp. - July 29, 2025) - Imagen Network (IMAGE), the decentralized AI social platform, has integrated the Grok framework to expand its adaptive feed logic and user experience personalization tools. The move empowers real-time adjustments to user feeds based on behavior patterns, interests, and social engagement data. Powering dynamic social feeds with intelligent, decentralized personalization. To view an enhanced version of this graphic, please visit: Grok's intelligent routing and inference capabilities enhance Imagen's curation engine—allowing AI systems to filter, prioritize, and surface content more accurately. This ensures that user feeds evolve dynamically, offering each participant a unique, context—aware social experience while preserving privacy and sovereignty. Combined with Imagen's decentralized content governance and token-based engagement mechanics, this integration represents a leap forward in scalable AI moderation for social applications. Peer-to-peer curation is faster, more intuitive, and better aligned with user intent and values. The Grok-backed enhancements support Imagen's broader mission: to give individuals creative control, better discovery, and real-time relevance in a decentralized digital world. About Imagen Network Imagen Network is a decentralized social platform that blends AI content generation with blockchain infrastructure to give users creative control and data ownership. Through tools like adaptive filters and tokenized engagement, Imagen fosters a new paradigm of secure, expressive, and community-driven networking. Media Contact Dorothy Marley KaJ Labs +1 707-622-6168 media@ Social Media Twitter Instagram

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