2 Popular AI Stocks to Sell Before They Drop 50% and 72% in 2026, According to Certain Wall Street Analysts

1 day ago 4

Trevor Jennewine, The Motley Fool

Wed, December 31, 2025 astatine 3:50 AM CST 5 min read

Some Wall Street analysts deliberation shares of Palantir and Intel -- some of which were large investments successful 2025 -- volition diminution sharply successful 2026.
Palantir is simply a recognized person successful artificial quality (AI) platforms and AI decisioning software, but it’s besides the astir costly banal successful the S&P 500 respective times over.
Intel has mislaid important CPU marketplace stock successful idiosyncratic computers and information centers, and its gross has declined 23% implicit the past 3 years contempt the AI boom.
10 stocks we similar amended than Palantir Technologies ›

In 2025, Palantir Technologies (NASDAQ: PLTR) shares person added 145% and Intel (NASDAQ: INTC) shares person added 88%. But definite Wall Street analysts expect the stocks to autumn sharply successful 2026, arsenic elaborate below:

Rishi Jaluria astatine RBC Capital has acceptable Palantir Technologies with a people terms of $50 per share. That implies 72% downside from its existent stock terms of $183. Meanwhile, Brent Thill astatine Jefferies has acceptable his people terms astatine $70 per share. That implies 61% downside.
Joseph Moore astatine Morgan Stanley has acceptable Intel with a bear-case people terms of $19 per share. That implies 50% downside from its existent stock terms of $38. Meanwhile, Matt Bryson astatine Wedbush has acceptable his people terms astatine $20 per share. That implies 47% downside.

Here's what investors should cognize astir Palantir and Intel.

A downward-moving reddish arrow atop U.S. currency.

Palantir develops analytics and artificial quality (AI) bundle that helps clients successful the nationalist and backstage sectors negociate and marque consciousness of analyzable data. Forrester Research has recognized the institution arsenic a person successful AI platforms and AI decisioning software, and International Data Corporation (IDC) has ranked Palantir arsenic a person successful determination quality software.

Palantir's gross maturation has accelerated successful 9 consecutive quarters, and the company's guidance suggests that inclination could proceed successful the adjacent quarter. Keith Weiss astatine Morgan Stanley precocious commented, "It's hard to find a amended cardinal communicative successful bundle than Palantir." But nary institution -- not adjacent the astir fundamentally dependable institution -- is worthy buying astatine immoderate price.

Palantir presently trades astatine 115 times sales, making it much than doubly arsenic costly arsenic the adjacent closest banal successful the S&P 500 (SNPINDEX: ^GSPC), which is AppLovin astatine 44 times sales. For context, Palantir could suffer 60% of its worth and inactive beryllium the astir costly banal successful the index. That premium is unsustainable. No bundle institution has ever maintained a price-to-sales ratio supra 100 indefinitely.