Nvidia (NASDAQ: NVDA) and Palantir Technologies (NASDAQ: PLTR) have recently been two of the hottest stocks on Wall Street because both companies play a key role in the artificial intelligence economy.

Nvidia’s stock has had a dream run, gaining more than 2,000% over the past five years and close to 180% in 2024. With a market capitalization of $3.37 trillion, it lags just behind Apple (AAPL) as one of the largest companies in the world.

"We could go back to quarters where the stock sells off, bears come out of hibernation mode, stock goes to $100, then all of a sudden, two months later, back up to all-time highs," Ives continued. "These knee-jerk reactions, it’s easy to get scared by them because they don’t say anything about near-term demand."

PLTR stock jumped 340% in 2024 with much of the gain coming after Trump's election win amid views government AI automation will rise.

Palantir Technologies (NASDAQ:PLTR) has been described as the best pure-play stock in artificial intelligence. The market agrees, sending shares of PLTR stock some 342% higher over the past year, far better than Nvidia (NASDAQ:NVDA),