Nvidia (NASDAQ: NVDA) and Palantir Technologies (NASDAQ: PLTR) delivered terrific gains last year as shares of both companies shot up remarkably thanks to the fast-growing demand for their artificial intelligence (AI)-focused hardware and software solutions.

Which AI stock is the better buy? Compare growth potential, financials, and market positions to decide which tech giant fits your portfolio.

Palantir (PLTR) is down significantly from its peak price, and most bulls have started toning down their excitement about the stock. PLTR was trading above $125 and at well over 600 times earnings. Bulls expected even more,

Nvidia (NASDAQ: NVDA) stock is getting hit with sell-offs in Thursday's trading. The company's share price was down 5.1% as of 2 p.m. ET amid a 2% decline for the S&P 500 and a 2.5% decline for the Nasdaq Composite.