AI Stocks Worth Ditching, Predicted to Decrease by 57% and 8% as Perced by Analysts on Wall Street
In the realm of tech companies leveraging generative AI for data analysis, Palantir Technologies (PLTR) and C3.ai have been making waves. While Palantir has garnered significant attention, the latest on C3.ai remains scarce.
### Palantir Technologies (PLTR)
Analyst opinions for Palantir are mixed, with 5 out of 24 analysts recommending a strong buy or buy, 15 suggesting hold or market perform, and 4 advising underperform or sell. Analysts appreciate Palantir's unique AI-driven platforms, Gotham and Foundry, which have no large-scale competitors, giving it a sustainable moat. However, the stock is considered expensive, with price targets ranging from about $101 to $155.
Recent analyst commentary suggests a cautious "Market Perform/Hold" rating due to the near-peak premium valuation and slim margin for error despite strong growth potential. There is optimism about Palantir’s long-term growth, fueled by NATO defense spending and its positioning in AI-driven markets.
Financially, Palantir is expected to grow earnings by around 10% over the next 12 months. The company’s valuation metrics, including its price-to-earnings (P/E) ratio, are considered high relative to conventional valuation measures, with critics arguing that current earnings do not justify the valuation. Much of Palantir's stock price appreciation to date is attributed to multiple expansion (investors willing to pay more per dollar of earnings over time) rather than purely earnings growth.
Despite high valuation, the stock has demonstrated strong recent performance, leading the S&P 500 in 2025 and gaining growing institutional interest. However, there is a risk of high valuation versus growth, and the stock could face a correction if it fails to meet lofty growth expectations.
### C3.ai
C3.ai's current analyst opinions, price-to-earnings ratio, growth rates, and profitability are not readily available in the provided search results. However, it is known that C3.ai has a cash balance of $742.7 million and substantial losses in its fourth quarter, which accounted for 81% of revenue. Analysts have a consensus price target of $29 for C3.ai, implying an upside of around 21%.
In conclusion, while both Palantir and C3.ai are leveraging generative AI for data analysis, their financial performances and analyst opinions present distinct landscapes. Palantir's unique AI-driven platforms have garnered attention but are considered expensive, while C3.ai's financials show substantial losses but also a strong cash position. Investors are advised to consult recent financial statements and analyst reports for up-to-date data on C3.ai.
Investing in Palantir could involve a high valuation risk, given its robust growth potential but high price-to-earnings ratio, and the stock's performance being driven more by multiple expansion rather than earnings growth. On the other hand, C3.ai presents a unique financial landscape, showing substantial losses but also a considerable cash balance, making it an interesting option for those seeking the potential for growth with a strong cash position.
