Author: openjargon

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The stock market hasn’t been the same since OpenAI unleashed ChatGPT to the public three years ago. As of Dec. 4, the S&P 500 (SNPINDEX: ^GSPC) market index has posted a 75% total return since then. The tech-heavy Nasdaq-100 index gained a dividend-adjusted 118% over the same period.

But the kings of artificial intelligence (AI) are soaring far above these not-so-pedestrian returns. AI chip champion Nvidia (NASDAQ: NVDA) is up more than tenfold and AI platform master Palantir Technologies (NASDAQ: PLTR) more than doubled Nvidia’s stellar gains:

PLTR Total Return Level data by YCharts

But past performance is never a guarantee of future results. What matters to today’s investors is a fundamentally different question — which AI stock is the better investment for new money today?

When AI valuations go orbital

Let’s address the elephant in the room, or the rocket ship in the stratosphere directly above Wall Street. Palantir’s stock has gone absolutely parabolic in 2025, trading at roughly 109 times trailing revenue. That triple-digit figure is not a typo. For context, even during the dot-com bubble’s wildest moments, most high-flyers topped out around 50 times sales.

Nvidia, meanwhile, has seen its valuation actually compress even as its business keeps breaking records. At about 24 times revenue, it’s still priced for perfection. However, compared to Palantir, Nvidia’s stock price looks almost reasonable.

Mind you, Nvidia is already absolutely massive and it should be harder to keep the hypergrowth going from an annual revenue base of $187 billion. Palantir’s trailing-12-month sales look minuscule in comparison, stopping at $3.9 billion. The law of large numbers says that Nvidia’s sales growth must slow down at some point. Meanwhile, Palantir’s long-term value is limited by its focus on the smaller market of government contracts. The company is pushing into commercial contracts too, but how many businesses need military-style data analytics?

The political cycle wild card

Palantir’s recent surge coincides suspiciously with a favorable shift in the federal spending environment. The company’s government revenue, while growing at a respectable 40% year over year, suddenly seems poised for acceleration as Washington embraces AI-powered defense and intelligence applications.

But here’s the risk nobody’s talking about: government contracts follow political cycles. What happens if spending priorities shift after the 2026 midterms? What if the regulatory environment becomes less friendly to aggressive data analytics? Palantir’s commercial business is growing faster at 54%, but government contracts still represent nearly half of revenue. That’s a lot of exposure to political winds that can change direction every two years (with sharper shifts around the four-year presidential election cycle).

Nvidia faces its own unique challenge — its biggest customers are becoming its biggest competitors. Amazon, Alphabet, and Microsoft are all developing custom AI chips while still buying billions worth of Nvidia’s GPUs. It’s like selling weapons to armies that are simultaneously building their own armories. Nvidia can maintain this delicate balance, but it requires constant innovation and careful relationship management.

“Less overvalued” wins by default

I can’t believe I’m writing this, but at current prices, Nvidia is the better buy — and that’s despite my concerns about customer competition and a still-rich valuation. Here’s why:

• Valuation sanity: OK, “sanity” is a stretch but at 24x sales vs. 109x, Nvidia’s premium is at least loosely grounded in financial reality.
• Proven moat: CUDA’s ecosystem lock-in is real and tested, while Palantir’s competitive advantages remain harder to quantify.
• Diversification: Nvidia sells to everyone in AI; Palantir’s concentration in government and large enterprises limits its addressable target market.
• Profit machine: Nvidia’s 57% net margin vs. Palantir’s 20% shows who’s actually printing money today.

But here’s the real takeaway: Both stocks are priced for a perfect AI future that may not materialize as smoothly as bulls expect. Palantir needs flawless execution and continued government AI spending to justify its valuation. Nvidia needs to fend off increasingly capable competitors while maintaining its innovation edge. Both might actually succeed in the long run, but it won’t be easy. 

For investors seeking AI exposure today, the smartest move might be looking elsewhere in the ecosystem — perhaps at the hyperscalers building AI services, semiconductor equipment makers enabling the whole industry, or even “boring” companies successfully implementing AI to improve their operations. Sometimes the best investment isn’t choosing between two expensive options — but finding a completely different third path.

So, if forced to pick between these two AI titans, I’d reluctantly choose Nvidia. But I reduced my Nvidia exposure in 2025, converting some of my AI-boom paper gains into cash profits.

My highest-conviction call in this duel is simple: Neither stock really offers a compelling risk/reward balance for new money at December 2025 prices. The AI revolution is real, but that doesn’t mean every AI stock is a buy at any price.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Better artificial intelligence stock: Palantir Technologies vs. Nvidia appeared first on The Motley Fool Australia.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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• Here’s why Nvidia still is a multimillionaire-maker

Anders Bylund has positions in Alphabet, Amazon, and Nvidia. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet, Amazon, Microsoft, Nvidia, and Palantir Technologies. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool Australia has recommended Alphabet, Amazon, Microsoft, and Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Looking to buy a few, or even seven, ASX mining shares to slip into your Christmas stockings?

Then Macquarie Group Ltd (ASX: MQG) has some new stock upgrades for you.

In the broker’s latest Commodities Update report, it notes that for 2026:

In the short term (CY26) we are overweight Gold (Au) with a 22% increase to CY26 price to US$4,225/Oz; we are 8% above VA consensus. Our Spodumene prices are 15%/20% below consensus/spot for CY26, but we note our med-long prices are 15% above consensus.

We are even-weight (within 5% of consensus) on Iron Ore (Fe), Met-Coal, Aluminium (Al), Thermal Coal and Nickel (Ni) in CY26E, but note our Fe and Thermal outlooks weaken over time.

Here’s what that all boils down to for these seven upgraded ASX mining stocks.

From underperform to neutral

Two large-cap ASX mining shares just earned upgrades from an underperform rating to neutral.

The broker noted that Mineral Resources Ltd (ASX: MIN) shares were raised to neutral, with the diversified S&P/ASX 200 Index (ASX: XJO) miner seeing “large EPS changes in FY26/27 as iron ore and lithium prices are materially raised”.

With Macquarie’s bullish outlook on the gold price, ASX 200 gold stock West African Resources Ltd (ASX: WAF) also earned an upgrade to neutral.

Macquarie expects these five ASX mining shares to outperform

Turning to the Aussie mining stocks Macquarie expects to outperform in 2026, ASX 200 coal miner Whitehaven Coal Ltd (ASX: WHC) was raised from neutral to outperform.

Macquarie said:

WHC remains our preferred coal exposure, which benefits from an expanded earnings multiple from 4.0x to 5.0x due to a recent tightening of the spread against peers (BHP/RIO, etc).

In the diversified ASX mining share space, Macquarie said “We prefer Rio Tinto Ltd (ASX: RIO) to BHP Group Ltd (ASX: BHP) and prefer South32 Limited (ASX: S32) outright.”

The broker upgraded South32 to outperform “given prospects of an improved returns outlook and a favourable catalyst backdrop”.

And three ASX gold stocks join the outperforming list.

Macquarie raised Newmont Corp (ASX: NEM) to outperform, stating:

We switch our large-cap preference from NST to NEM, due to its relatively attractive valuation (P/NPV of 0.9x vs NST at 1.1x) and underperformance over the last three months with NEM +21% and NST +36%.

Ora Banda Mining Ltd (ASX: OBM) also earned an upgrade to outperform.

Macquarie noted:

We still expect gold to trade at historically high levels in the near-term while also being held back by an upturn in global growth and a monetary policy easing cycle that falls short of market expectations.

And stating, “we remain overweight gold”, Macquarie also raised ASX mining share Resolute Mining Ltd (ASX: RSG) to an outperform rating.

Happy Christmas stock shopping!

The post 7 ASX mining shares to buy for Christmas amid upgrades from Macquarie appeared first on The Motley Fool Australia.

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Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended BHP Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

There are lots of ASX dividend shares to choose from on the local market.

To narrow things down, let’s take a look at two that Bell Potter thinks are among the best to buy in December.

Here’s what the broker is saying about them:

Harvey Norman Holdings Ltd (ASX: HVN)

This leading household goods retailer could be one of the best ASX dividend shares to buy now according to Bell Potter.

It highlights that the company is one of the most diversified retailers in terms of both categories and regions, while also benefitting from its significant property portfolio. It commented:

Despite the strong re-rate in the name, HVN trades at ~2.0x market capitalisation to freehold property value as Australia’s single largest owner in large format retail with a global portfolio surpassing $4.5b and collectively owning ~40% of their stores (franchised in Australia and company operated offshore). This sees our view that of the 1-year forward ~19x P/E multiple as justified considering the multiple catalysts near/mid-term.

Bell Potter has a buy rating and $8.30 price target on its shares.

As for income, the broker is forecasting fully franked dividends of 30.9 cents per share in FY 2026 and then 35.3 cents per share in FY 2027. Based on its current share price of $7.32, this would mean dividend yields of 4.2% and 4.8%, respectively.

Universal Store Holdings Ltd (ASX: UNI)

Another ASX dividend share that has been rated as a best buy by Bell Potter is Universal Store.

It is a leading youth focused apparel, footwear, and accessories retailer with around ~85 stores under its flagship Universal Store brand. It is also expanding its presence with stand-alone formats for its private label brands Perfect Stranger and Thrills stores.

Bell Potter thinks its shares are undervalued, especially given its positive growth outlook. It said:

At ~18x FY26e P/E (BPe), we see UNI trading at a discount to the ASX300 peer group and see the multiple justified by the distinctive growth traits supporting consistent outperformance in a challenging category, longer term opportunity with three brands, organic gross margin expansion via private label product penetration (currently ~55%) and management execution.

While catalysts associated with further interest rate cuts for Australia in CY25 are not imminent post the third rate cut in August, we continue to see the youth customer prioritising on-trend streetwear and expect UNI to benefit with their leading position.

The broker has a buy rating and $10.50 price target on its shares.

With respect to dividends, Bell Potter is forecasting fully franked payouts of 37.3 cents per share in FY 2026 and then 41.4 cents per share in FY 2027. Based on its current share price of $8.41, this would mean dividend yields of 4.4% and 4.9%, respectively.

The post 2 of the best ASX dividend shares to buy in December appeared first on The Motley Fool Australia.

More reading

• Where to invest $20,000 in ASX dividend shares
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Motley Fool contributor James Mickleboro has positions in Universal Store. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Harvey Norman. The Motley Fool Australia has recommended Universal Store. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

I believe owning Coles Group Ltd (ASX: COL) shares is a great option for dividends because of both its consistently rising passive income and the size of the dividend yield.

On top of the pleasing dividend, Coles has a defensive earnings base – we all need to eat, of course.

The business has grown its dividend each year since it was listed several years ago, and we’re going to take a look at how large the dividend could grow in the coming years.

FY26

Coles has started FY26 strongly, in the first quarter of FY26, it delivered group total sales revenue of $10.96 billion, representing 3.9% growth – this beat UBS’ expectations.

Broker UBS said that Coles supermarkets are executing strongly and leveraging key investments.

Those investments include Witron automated distributed centres, which are improving product availability in NSW and Queensland. Ocado customer fulfilment centres (CFCs) helped drive 28% online sales growth in the FY26 first quarter.

UBS also pointed out that Coles supermarkets are delivering ongoing promotional effectiveness, which are fewer and better, and product ranging is better (which is increasingly store-led), according to UBS. Both of these advantages have been enabled by the supply chain.

With the effective execution of its strategy, UBS is projecting that the business could decide to pay an annual dividend per share of 79 cents following an increase of the company’s net profit.

If Coles does decide to pay that projected amount, it would mean a grossed-up dividend yield of 5.2%, including franking credits.

FY27

The company could see further dividend growth in the 2027 financial year, thanks to the strength of its revenue and net profit.

UBS is forecasting the business could grow its dividend to a pleasing 93 cents per share in FY27. If that comes true, it would translate into a grossed-up dividend yield of 6.1%, including franking credits, at the current Coles share price.  

FY28

The 2028 financial year could get even better for owners of Coles shares.

In FY28, the board of directors of Coles is projected by UBS to declare an annual dividend per share of 97 cents. If that happens, the business could have a grossed-up dividend yield of 6.3%.

FY29

The broker is projecting that the business could deliver more profit and dividend growth for investors in FY29. UBS is currently suggesting the Coles annual dividend per share could climb to $1.01.

If that happens, Coles would deliver investors a grossed-up dividend yield of 6.6%, including franking credits, using the valuation at the time of writing.

FY30

The final year of this series of projections is expected to see the biggest dividend of all.

UBS forecasts that Coles may deliver investors an annual dividend per share of $1.04. That means the business could provide a grossed-up dividend yield of 6.8%, including franking credits.

The post Here’s the dividend forecast out to 2030 for Coles shares appeared first on The Motley Fool Australia.

More reading

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Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

There are a number of reasons why ASX blue-chip shares usually make strong investments each year. Stability, strong earnings generation each year and (usually) a good dividend yield together can be very appealing.

I wouldn’t focus purely on the dividend income. I think it’s a good idea for investors to ensure that the target business has a good outlook for earnings growth too, otherwise the dividends may not be reliable, with the share price lacking that organic tailwind.

The two ASX blue-chip shares I’m going to highlight both have strong dividend yields.

Telstra Group Ltd (ASX: TLS)

The Australian telecommunications giant is one of the most impressive names for payouts because of how generous it is with its dividend payout ratio. In recent times, it has paid out close to all of its net profit generation each year, though it has held onto a higher proportion of its cash earnings.

The company has invested significant sums into its spectrum assets and 5G network to ensure that it has the most appealing network for customers. More subscribers mean the business can spread its costs across more users.

We saw this effect in the FY25 result, with mobile revenue climbing 3% and operating profit (EBITDA) climbing 5%.

I’m expecting the company’s EBITDA and net profit margin to slowly rise over the rest of the decade. I’m particularly optimistic this can happen if Telstra can win more broadband customers onto its wireless (5G-powered) offering, which would enable a higher margin from that household (rather the margin going to the NBN).

I think it’s quite likely the ASX blue-chip share will hike its FY26 annual dividend to at least 20 cents per share, which could mean a grossed-up dividend yield of 5.8%, including franking credits. If it paid a dividend of 21 cents per share, it’d be a grossed-up dividend yield of 6%, including franking credits.

Charter Hall Long WALE REIT (ASX: CLW)

The other business I want to highlight for its yield is a real estate investment trust (REIT) that owns a diversified portfolio of properties which are, on average, long-term rental leases.

Charter Hall Long WALE REIT has a weighted average lease expiry (WALE) of around nine years, meaning its rental earnings are locked in for the long-term.

The business owns properties in a number of areas including service stations, hotels and pubs, telecommunication exchanges, data centres, distribution centres and more. I like that this lowers the risk of being too exposed to one subsector.

This REIT has lots of blue-chip tenants, which is one of the reasons why it’s able to provide investors with pleasing defensive earnings. Its rental income (on a per-property basis) is growing thanks to regular rental increases that are either fixed or linked to inflation, providing a tailwind or rental profits and the distribution.

Charter Hall Long WALE REIT is expecting to grow its FY26 distribution to 25.5 cents per security, translating into a forward distribution yield of 6.3% thanks to its 100% distribution payout ratio.

The post 2 ASX blue-chip shares offering big dividend yields appeared first on The Motley Fool Australia.

More reading

• The smart way to make a $25,000 passive income from ASX shares
• Invested in Telstra shares? Here are the dividend dates for 2026
• Why Telstra shares are a retiree’s dream
• Brokers name 3 ASX dividend shares to buy in December
• 2 ASX dividend shares with yields above 6%

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Telstra Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.