Analyst Predicts 13% Decline for Overvalued Palantir Stock Amid AI Hype

Palantir Technologies' stock has surged 34% year to date and 186% over the last 12 months, driven by improving margins and AI adoption. However, brokerage firm Monness, Crespi, Hardt & Co. downgraded its rating to sell, maintaining a $20 price target, citing stretched valuation and spotty execution. With the stock trading at roughly $23 per share, the firm's target implies a 13% downside. While Palantir remains well-positioned for long-term AI trends, its high valuation and uneven sales to government customers raise concerns. Investors with lower risk tolerance may want to consider more conservatively valued options in the AI space.