Two AI Stocks Face Potential Sharp Declines According to Wall Street Analysts
Wall Street analysts have raised concerns about two major artificial intelligence stocks—SpaceX and Palantir Technologies—with potential declines of 48% and 54%, respectively, over the next year. Despite strong revenue growth for SpaceX in Q2 FY26, analyst Glenn Thum from Phillip Securities has issued a sell rating due to unproven valuation premiums and uncertain long-term contracts with major partners like Alphabet and Anthropic. Palantir Technologies faces similar skepticism as its price-to-sales ratio remains at unsustainable levels despite strong revenue growth. Analyst Brent Thill of Jefferies raised his price target, but the stock's current level implies a significant downside risk if market sentiment shifts or an AI valuation bubble bursts.
Topics: AI analyst_ratings earnings Palantir Technologies SpaceX