America's biggest defense technology company Palantir may have sent a ‘stock warning’ to Nvidia: Will lose billions as ...

May 12, 2026 - 07:13

Palantir Technologies, one of America's largest defense technology firms, has reportedly issued a stark warning regarding Nvidia's near-term outlook. According to internal signals from Palantir, the chip giant could face significant financial headwinds, potentially losing billions as demand patterns shift in the AI hardware market.

The warning comes just ahead of Nvidia's fiscal first-quarter earnings report, scheduled for May 20. CEO Jensen Huang has led the company through a period of explosive growth driven by surging demand for AI chips, but Palantir's analysis suggests that the market may be approaching a saturation point among key enterprise and government clients. The defense contractor, which relies heavily on Nvidia's GPUs for its own AI platforms, is reportedly seeing a slowdown in new orders and longer deployment cycles.

Palantir's internal data points to a possible correction in inventory buildup, where customers who previously stockpiled chips are now pausing purchases. This could translate into a revenue shortfall of several billion dollars for Nvidia in the coming quarters, according to the firm's projections. While Nvidia has consistently beaten earnings expectations, the warning from a major partner like Palantir raises questions about the sustainability of its current growth trajectory.

Investors are now closely watching the May 20 earnings call for any signs of softening demand. Nvidia has not publicly responded to the report, but the market is bracing for potential volatility. If Palantir's assessment proves accurate, the AI chip boom may be entering a more cautious phase, with ripple effects across the entire tech sector.