Nvidia, Microsoft and Palantir Analysis – Still a Buy After Massive Rallies?

Artificial intelligence has become a dominant theme in the stock market, with companies such as Nvidia Corp. (NVDA), Microsoft Corp. (MSFT), and Palantir Technologies (PLTR) leading the charge. As AI adoption accelerates, their stock prices have soared, fueled by strong demand and bullish sentiment. However, some stocks have surged to potentially overvalued levels following sharp rallies.

The chart below shows the percentage price gains for Nvidia, Microsoft, and Palantir over the past decade. Palantir leads with a staggering 1,570% gain, followed by Nvidia at 1,180%, while Microsoft trails with a 144.2% increase. The sharp rallies in Palantir and Nvidia reflect strong investor enthusiasm but also raise concerns about overheating. Such vertical moves may trigger short-term pullbacks or consolidation. However, Microsoft appears more stable and less volatile, making it a potentially safer investment.

Despite the overvalued conditions in Nvidia and Palantir, both companies continue to show strong profitability. The chart below highlights Nvidia’s dominance, with earnings growth surging over 1,500% over the past decade. Palantir follows with a 287% increase, while Microsoft shows steady growth of 33.5%. Although Palantir’s net income remains much lower than that of Nvidia and Microsoft, the company still holds strong growth potential in the coming years. Microsoft will release its Q4 2025 earnings on July 30, 2025, which will drive the next move for the stock price.

Nvidia Technical Analysis

NVDA Weekly Chart – Ascending Broadening Wedge Pattern

The weekly chart for Nvidia shows that the stock has been trading within an ascending broadening wedge pattern. It has established strong long-term support along the lower boundary of the wedge and recently surged higher. The formation of an inverted head and shoulders pattern in 2022, followed by price compression in 2023, signals strong bullish momentum and increases the likelihood of further upside.

Robust demand for AI, combined with Nvidia’s leadership in the sector, suggests continued gains. However, investors should consider buying on pullbacks. The $150 level remains a key support zone for Nvidia.

NVDA Daily Chart – Breakout from Descending Broadening Wedge

The daily chart for Nvidia shows that the stock has formed a descending broadening wedge pattern and broken above the $130 level. A breakout above $130 and $150 suggests that the stock may continue to rise in the short term. However, the price appears overbought, so investors may consider buying on dips toward the $150 region.

Microsoft Technical Analysis

MSFT Weekly Chart – Symmetrical Broadening Wedge

The weekly chart for Microsoft shows that the stock price is continuously rising and hitting new record highs each week. The price has formed a symmetrical broadening wedge pattern within an ascending broadening wedge, indicating heightened volatility.

The market remains overbought in the short term. However, the long-term target remains the $650 area. Therefore, any correction toward the $400–$500 region would be considered a strong buying opportunity to target the $650 level.

MSFT Daily Chart – Breakout from Descending Channel

The daily chart for Microsoft shows that the stock formed a cup-and-handle pattern during the 2022–2023 consolidation. After breaking out of this pattern, the price formed a descending channel and subsequently broke above the $470 resistance level.

A breakout above the $440–$470 region triggered a strong upward move. The price remains above the 50-day and 200-day SMAs, signalling continued bullish momentum. However, a pullback toward the $400–$500 region would be considered a strong buying opportunity for investors.

Palantir Technical Analysis

PLTR Weekly – Rebound

The weekly chart for Palantir indicates that the stock formed a strong base during the 2021–2024 consolidation period. A breakout above $45 triggered a sharp rally, pushing the price above $150 with no immediate signs of correction.

However, the steep surge has left Palantir in overbought territory, as indicated by the RSI. Investors may consider waiting for a pullback before entering new positions. Given Palantir’s strong financial condition, any correction toward the $120 level would present a potential buying opportunity.

PLTR Daily Chart – Descending Channel

The daily chart for Palantir indicates that the price has encountered strong resistance in the $150 to $160 range. A breakout above this zone could trigger further upside, while a pullback toward the $125 area would present a strong buying opportunity. The emergence of a cup pattern suggests that the overall trend remains bullish.