What Happens to Stocks During Wars — 80 Years of Data
From WWII to Ukraine — how the stock market has reacted to every major military conflict, what recovered, what didn't, and what 80 years of S&P 500 data actually shows.
12 min read
Read Article
AI Stocks in 2025: Palantir & Nvidia Performance — What Investors Should Know
Palantir up 110% and Nvidia up 29% in 2025. Learn about AI stock investing, risk management approaches, and artificial intelligence market trends. Educational guide with data and charts.
Educational purposes only. This content does not constitute investment advice. Read our disclaimer
StockCram is not a broker-dealer, investment adviser, or financial institution. All content is for educational and informational purposes only and should not be construed as personalized investment advice. Consult a qualified financial professional before making investment decisions. Past performance does not guarantee future results.
Artificial intelligence stocks have been among the most discussed in 2025. Palantir up 110% and Nvidia up 29% year-to-date - both outpacing the broader S&P 500's +7% return.
With AI stocks drawing significant attention, investors may want to understand the landscape before making decisions. This educational guide examines the factors behind AI stock performance and risk considerations.
Learn from real performance data, understand why Palantir rose 110% while Nvidia gained a steady 29%, and explore common approaches to AI stock investing - including risk management concepts that beginners should understand.
2025 YTD AI Stock Scorecard
The numbers tell the story: AI stocks are absolutely dominating 2025. Here's how the market leaders stack up through August 1st.
Complete performance breakdown showing why AI stocks are 2025's biggest winners
| Price | Stock | High 2025 | Market Cap | Ytd Return |
|---|---|---|---|---|
| $154.27 | Palantir (PLTR) | $160.39 | $364B | +110% |
| $173.72 | Nvidia (NVDA) | $187.45 | $4.24T | +29% |
| 6,238 | S&P 500 (^GSPC) | 6,444 | — | +6.9% |
Monthly price progression comparing Palantir and Nvidia through August 2025. Historical data; past performance does not indicate future results.
| Month | Nvda Price | Pltr Price | Nvda Change | Pltr Change |
|---|---|---|---|---|
| Aug '24 | $134.50 | $73.40 | — | — |
| Sep '24 | $132.80 | $76.80 | -1.3% | +4.6% |
| Oct '24 | $138.20 | $82.10 | +4.1% | +6.9% |
| Nov '24 | $142.10 | $89.50 | +2.8% | +9.0% |
| Dec '24 | $145.60 | $95.20 | +2.5% | +6.4% |
| Jan '25 | $141.30 | $108.70 | -3.0% | +14.2% |
| Feb '25 | $148.70 | $125.30 | +5.2% | +15.3% |
| Mar '25 | $158.90 | $138.90 | +6.9% | +10.9% |
| Apr '25 | $162.40 | $145.20 | +2.2% | +4.5% |
| May '25 | $168.20 | $149.80 | +3.6% | +3.2% |
| Jun '25 | $171.50 | $152.60 | +2.0% | +1.9% |
| Jul '25 | $173.72 | $154.27 | +1.3% | +1.1% |
| 12-Mo Total | +29.2% | +110.1% | — | — |
Palantir: The Comeback Code-Cruncher
What's driving the rally? Big U.S. Army enterprise contract — 10-year deal worth up to $10 billion, replacing 75 smaller contracts. Commercial revenue growth from private firms rapidly adopting Palantir's AI Platform (AIP), now outgrowing government revenue.
- ✓Big U.S. Army enterprise contract — 10-year deal worth up to $10 billion, replacing 75 smaller contracts
- ✓Commercial revenue growth — private firms rapidly adopting Palantir's AI Platform (AIP), now outgrowing government revenue
- ✓AIP enables 'bring-your-own-LLM' — companies plug GPT-style models into their data without sending everything to public clouds
- ✓Earnings (Aug 4): analysts expect 54% EPS growth and 38% revenue growth year-over-year
- ✓Valuation: at $154, PLTR trades near 19× forward sales and 75× forward earnings — high, so growth must stay hot
- ✓Market cap: Now $364 billion, making it a mega-cap defense technology stock
Nvidia: The GPU Maker Powering Every AI Model
Why the chip giant still leads: GPU moat with H200 and Blackwell chips remain the gold standard for AI training and inference. Software lock-in through CUDA + DGX Cloud ecosystem creates sticky customer relationships.
- ✓GPU moat — H200 and Blackwell chips remain the gold standard for AI training and inference
- ✓Software lock-in — CUDA + DGX Cloud ecosystem creates sticky customer relationships
- ✓Market dominance — Controls an estimated 92% of data center AI chips
- ✓Diversification — networking (Spectrum-X), automotive AI, and edge computing create new revenue streams
- ✓29% YTD vs. +7% for the S&P 500 index
- ✓Has averaged ~40% total return per year over two decades
- ✓Trading at 55× trailing P/E with strong earnings growth expected
- ✓Revenue projected to reach $111.3 billion in 2025, up from $26.97 billion in 2023
The AI Market Boom: $235B to $631B by 2028
The numbers are staggering: According to International Data Corporation, the global artificial intelligence market is expected to grow from $235 billion in 2024 to more than $631 billion by 2028. This represents massive expansion opportunities for positioned investors.
- ✓AI companies raised $52B in Q1 2025 alone
- ✓McKinsey predicts $5.2 trillion in AI infrastructure investments by 2030
- ✓88% of companies report plans to increase AI spending in 2025
Key Risk Concepts to Understand
Before considering any investment in AI stocks, it is important to understand the risks involved. Here are key concepts every investor should know.
- ✓Concentration risk: Single sectors or themes can underperform for long periods
- ✓Volatility: High-growth stocks historically experience significant price swings
- ✓Valuation risk: Strong narratives and past performance do not guarantee future returns
- ✓Time horizon: Consider how long you can hold through potential downturns
Educational overview of risks associated with AI sector investing
| Risk Type | Description | Consideration |
|---|---|---|
| Concentration Risk | Single themes can underperform for extended periods | Diversification across sectors matters |
| Volatility Risk | High-growth stocks can swing 20-50% in corrections | Past performance does not predict future results |
| Valuation Risk | Strong narratives do not guarantee returns | High P/E ratios indicate elevated expectations |
| Competition Risk | Tech leadership can shift quickly | Monitor industry dynamics over time |
Frequently Asked Questions (Beginner-Friendly)
Common questions about AI stock investing with beginner-friendly answers.
Key Takeaways
•
Palantir (+110% YTD) and Nvidia (+29% YTD) have led AI stocks in 2025
Both stocks have outpaced the S&P 500 +7% return through mid-2025, though past performance does not guarantee future results
•
High valuations carry elevated risk
Strong performance has pushed valuations higher, meaning expectations are elevated and disappointments can lead to sharp corrections
•
Understanding risk factors is essential before investing
Concentration risk, volatility, valuation, and competition are all factors to consider when evaluating any investment
•
The AI market is projected to grow significantly through 2028
Industry projections suggest continued growth, though projections are not guarantees and actual results may vary
Next Steps
1
Learn options trading basics
Master call and put options to protect your AI stock positions
⏱️ This week
2
Study portfolio protection strategies
Discover proven strategies to protect investments during market volatility
⏱️ Next week
3
Stay updated with market analysis
Monitor current market trends and AI sector opportunities
⏱️ Daily
Additional Resources
Related Articles
Dollar Devaluation vs Depreciation: What a Weak Dollar Really Means
Is the U.S. dollar being devalued or just weakening? Learn the real difference between devaluation and depreciation, why markets care, and how it affects inflation, Treasury yields, mortgage rates, and your investments.
11 min read
Read Article
Fed Independence Explained: Why Markets Care About Jerome Powell & Your Rates
Understand Fed independence in plain English. Learn why political pressure on Jerome Powell moves Treasury yields, mortgage rates, stocks, and the dollar—and what it means for your money.
12 min read
Read Article