Wall Street Analysts Predict Sharp Declines for AI Stocks Palantir and CoreWeave

Palantir Technologies and CoreWeave, two high-flying artificial intelligence stocks, face potential steep declines according to Wall Street analysts. Palantir's shares, up 109% this year, could drop 62% from current levels based on Jefferies' $60 price target. CoreWeave, which has surged 175% in 2024, may see a 47% correction to Morgan Stanley's $58 target.

Palantir's ontology-based analytics platforms and AI capabilities have driven its rally, while CoreWeave benefits from the AI infrastructure boom. Both stocks now trade at premiums that analysts believe are unsustainable as competition intensifies in the enterprise AI sector.

The divergent views between retail enthusiasm and institutional skepticism highlight growing tensions in AI valuations. Market participants are weighing whether these companies represent transformative technologies or overheated momentum plays.