Nvidia Just Handed Its 1.3 Million-Part Supply Chain to a Stock Cramer Called Ice Cold
Jim Cramer wrote off Palantir as ice cold just 48 hours before Nvidia revealed which software company it trusts to run every component inside its most advanced AI rack, and the timing raises an uncomfortable question about who actually understands…
On Wednesday morning, NVIDIA (NASDAQ:NVDA | NVDA Price Prediction) shared a secret: it has handed the software running its 1.3 million-part supply chain inside every Vera Rubin rack to Palantir (NASDAQ:PLTR). The endorsement lands in an awkward spot for the market. Just two days earlier, on his September 8 broadcast, Jim Cramer described Palantir as “ice cold for the first half of this year” before its recent rebound. The stock is down 6.2% YTD even as NVIDIA has climbed 17.52%.
Palantir shares traded at $167.15 midday Thursday, down 1.41% on the session despite the news, per Barron’s coverage of the expanded AI partnership.
Inside the Sovereign AI Supply Chain Deal
The expanded partnership fuses Palantir Foundry and AIP with NVIDIA Nemotron open models grounded in Palantir Ontology. NVIDIA CEO Jensen Huang described the stakes, calling supply chains “the operating system of the physical economy.” Palantir CEO Alex Karp said the sovereign stack is “delivering capabilities that exceed the frontier while providing alpha protection qualities unavailable otherwise.”
The reference architecture, called SAIOS, runs on hardware from Dell Technologies (NYSE:DELL) and Cisco for on-premises deployment; Rackspace and Nebius enable co-lo and cloud options, creating a second-order beneficiary list (we profiled seven of these non-chipmaker AI infrastructure suppliers, from power to networking, in a free report you can grab here).
What Karp Told Investors Five Weeks Ago
The NVIDIA relationship was foreshadowed on Palantir’s August 3 earnings call. Karp told analysts: “We built a partnership with NVIDIA. We’re expanding our application layer. We are going to enter the market and already entering it in the classified space, as Shyam alluded to, of fine-tuning models so that the models actually fine-tuned by us in our enterprise on an NVIDIA stack outperform frontier models.”
He added the punchline sovereign AI buyers care about: “And you own the weights. You own the alpha. You own everything.”
Financial Backdrop Behind the Ice Cold Label
Cramer’s cold characterization sits alongside numbers most software companies would envy. Palantir’s Q2 FY2026 revenue reached a record $1.94 billion, up 92.83% year over year, with adjusted EPS of $0.41 versus a $0.28 consensus. U.S. commercial revenue jumped 149% to $764 million, and the Rule of 40 score hit 155%. Management raised full-year revenue guidance to $8.150 to $8.158 billion.
The friction is valuation. Palantir carries a P/E of 240 and a market cap near $383.9 billion, on $265 million of quarterly stock-based compensation.
Verdict on the Thesis
NVIDIA’s decision to run its own bill of materials on Foundry is the strongest possible reference customer validation for AIP as operational infrastructure. What it doesn’t do is compress Palantir’s multiple. Investors researching PLTR should treat the announcement as real proof that the platform works at extreme scale, while pricing separately the risk that a 240x earnings multiple already assumes every NVIDIA-caliber logo signs.
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Gerelyn Terzo is the author of dividend investing handbook "Dividend Investing Strategies: How to Have Your Cake & Eat It Too." A veteran financial journalist, she covers agri-finance for outlets like Global AgInvesting and the broader stock market and personal finance for 24/7 Wall Street. She began at CNBC and later helped launch Fox Business in New York. Gerelyn currently resides in Woodland Park, Colorado and dabbles in nature photography as a hobby.
