Wall Street Analysts Flag Overvalued AI Stocks: Palantir and Arm Face Steep Downside Risks
Palantir Technologies and Arm Holdings—two high-flying AI stocks—now face bearish projections from Wall Street analysts. RBC Capital's Rishi Jaluria sees 73% downside for Palantir (currently at $171), slapping a $45 price target on the stock. Morningstar's Javier Correonero warns of 46% downside for Arm (trading at $150), citing an $80 fair value estimate.
Palantir's AI Platform (AIP) has driven eight consecutive quarters of accelerating growth, leveraging its ontology-based architecture to create digital twins for enterprise decision-making. Yet valuations appear stretched after a 2,570% rally since January 2023. Arm, up 195% since its September IPO, faces similar concerns despite its dominance in semiconductor IP.