{"id":154471,"date":"2026-08-28T14:30:28","date_gmt":"2026-08-28T14:30:28","guid":{"rendered":"https:\/\/www.europesays.com\/ai\/154471\/"},"modified":"2026-08-28T14:30:28","modified_gmt":"2026-08-28T14:30:28","slug":"2-premier-artificial-intelligence-ai-stocks-that-can-plunge-up-to-63-according-to-select-wall-street-analysts-2","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/ai\/154471\/","title":{"rendered":"2 Premier Artificial Intelligence (AI) Stocks That Can Plunge Up to 63%, According to Select Wall Street Analysts"},"content":{"rendered":"\n

The evolution of artificial intelligence (AI)<\/a> has been the lead catalyst responsible for lifting the benchmark S&P 500 to all-time highs. Empowering software and systems with the tools to make split-second, autonomous decisions is a multitrillion-dollar opportunity that businesses don’t want to miss. <\/p>\n

While most Wall Street analysts expect the AI revolution to increase corporate growth rates and push stocks higher, optimism isn’t universal<\/a>. According to select Wall Street analysts, two of the hottest, high-flying AI stocks, Palantir Technologies (NASDAQ: PLTR) and Tesla (NASDAQ: TSLA), can lose more than half their value. <\/p>\n

Missed Nvidia in 2009? This Rare Signal Is Flashing Again.\u00a0In 2009, a “Double Down” signal flashed for a little-known chipmaker called Nvidia.\u00a0For the first time in years, that same “Total Conviction” signal is flashing for a company 1\/100th the size of Nvidia.\u00a0Continue \u00bb<\/a> <\/p>\n

\"An<\/a> Image source: Getty Images. Palantir Technologies: Implied downside of 54% <\/p>\n

AI-driven software-as-a-service (SaaS) provider Palantir is one of the stock market’s most polarizing tech companies. <\/p>\n

On the one hand, the company’s Gotham SaaS platform has no large-scale competition. The federal government and its immediate allies rely on Gotham to plan and execute military missions. With limited competition, Gotham is driving strong double-digit sales growth, with contracts often locked in over four or five years. <\/p>\n

On the other hand, analysts like Brent Thill at Jefferies see a company that’s practically priced for perfection in an imperfect industry. Thill has a sell rating on Palantir and an $80 price target, implying downside of up to 54%. <\/p>\n

While Palantir’s sustainable moat warrants a premium, history shows that no company has sustained a price-to-sales (P\/S) ratio above 30 for an extended period. CEO Alex Karp’s company entered 2026 at a P\/S ratio above 100 and closed out the Aug. 25 trading session at a trailing 12-month P\/S ratio of 72. It’s unlikely that this valuation premium is sustainable, which suggests Thill’s low-water price target could one day become a reality. <\/p>\n

\"An<\/a> Image source: Tesla. Tesla: Implied downside of 63% <\/p>\n

But the potential disaster du jour among AI stocks, based on Wall Street’s price targets, comes courtesy of electric-vehicle (EV) maker Tesla. Wells Fargo analyst Colin Langan maintains a sell rating on Tesla stock and foresees shares heading to $130, which is 63% below its closing price on Aug. 25. <\/p>\n

Although Tesla revolutionized the EV industry and has been profitable on a recurring basis for six years and counting, Langan has been critical of the company’s shrinking vehicle margin. Aggressive EV competition has prompted Elon Musk’s company to slash prices on several occasions. While these price cuts have eventually worked out inventory kinks, they’ve come at the detriment of the company’s EV margin. <\/p>\n

Valuation is another clear concern raised by Wells Fargo’s analyst. Whereas traditional auto stocks typically trade at high single-digit to low double-digit price-to-earnings ratios, Tesla is valued at 198 times estimated earnings per share in 2026. The problem with such an aggressive valuation multiple is that Tesla is only expected to grow its sales by 12% this year. <\/p>\n

Even though Langan didn’t mention it in his firm’s research note, I believe it’s worth noting that Tesla CEO Musk has a terrible habit of overpromising and underdelivering. Though Musk has overseen the launch of several successful EVs and pushed Tesla into energy generation and storage products, several of his promises have gone unfulfilled. <\/p>\n

For example, proclaiming there’d be 1 million robotaxis on public roadways by the end of 2020 and suggesting Level 5 full self-driving was “one year away” for more than a decade are promises built into Tesla’s share price that have never materialized. <\/p>\n

Should you buy stock in Palantir Technologies right now? <\/p>\n

Before you buy stock in Palantir Technologies, consider this: <\/p>\n

The Motley Fool Stock Advisor analyst team just identified what they believe are the\u00a010 best stocks<\/a> for investors to buy now\u2026 and Palantir Technologies wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years. <\/p>\n

Consider when Netflix made this list on December 17, 2004… if you invested $1,000 at the time of our recommendation,\u00a0you’d have $439,308!* Or when Nvidia made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation, you’d have $1,286,826!* <\/p>\n

Now, it’s worth noting\u00a0Stock Advisor’s total average return is 964% \u2014 a market-crushing outperformance compared to 212% for the S&P 500.\u00a0Don’t miss the latest top 10 list, available with\u00a0Stock Advisor, and join an investing community built by individual investors for individual investors. <\/p>\n

See the 10 stocks \u00bb<\/a> <\/p>\n

*Stock Advisor returns as of August 28, 2026. <\/p>\n

Wells Fargo is an advertising partner of Motley Fool Money. Sean Williams<\/a> has positions in Wells Fargo. The Motley Fool has positions in and recommends Jefferies Financial Group, Palantir Technologies, and Tesla. The Motley Fool has a disclosure policy<\/a>. <\/p>\n

2 Premier Artificial Intelligence (AI) Stocks That Can Plunge Up to 63%, According to Select Wall Street Analysts<\/a> was originally published by The Motley Fool <\/p>\n","protected":false},"excerpt":{"rendered":"The evolution of artificial intelligence (AI) has been the lead catalyst responsible for lifting the benchmark S&P 500…\n","protected":false},"author":2,"featured_media":154472,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[6569,24,25,9921,3329,75156,75155,75154,58,75153,361,651,46223,2616,25158],"class_list":["post-154471","post","type-post","status-publish","format-standard","has-post-thumbnail","category-ai","tag-6569","tag-ai","tag-artificial-intelligence","tag-ev","tag-gotham","tag-langan","tag-motley","tag-motley-fool-money","tag-nvidia","tag-p-s","tag-palantir","tag-palantir-technologies","tag-stock-advisor","tag-tesla","tag-wells"],"_links":{"self":[{"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/posts\/154471","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/comments?post=154471"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/posts\/154471\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/media\/154472"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/media?parent=154471"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/categories?post=154471"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/ai\/wp-json\/wp\/v2\/tags?post=154471"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}