Palantir Just Showed Why Nvidia Stock Can Plunge on May 21 - The Motley Fool

Following the peak of earnings season, Nvidia is set to report its first-quarter results on May 20, expected to show strong revenue and profit growth. However, Palantir's recent performance serves as ... Read original →

Palantir’s post-earnings selloff exposes the fragility of AI-driven valuations: even explosive revenue growth can’t justify a 60x P/S ratio. This warns Nvidia that ecosystem dominance via CUDA isn’t immune to margin erosion—hyperscalers’ in-house AI chips, though technically inferior, offer cost-driven substitution. Technologically, reliance on TSMC’s 3nm and EUV creates a single-point failure in geopolitically tense supply chains. U.S. export controls already inflate Nvidia’s compliance overhead and inventory costs. Over the next 12–24 months, the market will pivot from raw compute hunger to application efficiency; hardware players without defensible software moats face brutal repricing. Nvidia’s May 21 volatility may mark the start of a broader reckoning for AI infrastructure stocks.