3 Premier Artificial Intelligence (AI) Stocks That Can Plunge by Up to 86% in 2025, According to Select Wall Street Analysts

AI Stocks Overview - Not all early-stage risers in AI are guaranteed to be long-term winners, as evidenced by the mixed outlook on Wall Street [1][2] - AI technology enables software and systems to make split-second decisions without human intervention, with wide-reaching utility across industries [2] - Three premier AI stocks are expected to see significant declines in 2025, based on low-water price targets from Wall Street analysts [3] Super Micro Computer (SMCI) - Super Micro Computer is expected to see a 55% decline in 2025, with a price target of $15 per share [4] - The company is well-positioned to benefit from the AI revolution, with net sales surging 110% to nearly$ 15 billion in fiscal 2024 [5] - Super Micro Computer utilizes Nvidia's GPUs in its rack servers, enhancing their desirability [6] - The company faced allegations of "accounting manipulation" in a research report by Hindenburg Research, though an independent committee found no evidence of misconduct [7] - Competition in data center infrastructure is increasing, suggesting a cautious approach is warranted [8] Palantir Technologies (PLTR) - Palantir Technologies may see an 86% decline in 2025, with a price target of $11 per share [9] - The company's stock has gained 1,140% over the past two years, driven by its unique operating model and AI-driven platforms (Gotham and Foundry) [9][11] - Palantir has shifted to recurring profitability ahead of schedule, supported by multiyear contracts with the U.S. government [12] - The company's valuation is a concern, with a price-to-sales (P/S) ratio of nearly 73, which is historically unsustainable [14] - Long-term growth for Gotham is limited by geopolitical restrictions, as non-allies of the U.S. are unlikely to gain access [13] SoundHound AI (SOUN) - SoundHound AI is forecasted to decline by 66% in 2025, with a price target of$ 7 per share [16] - The company has seen parabolic growth, driven by its position in the next stage of AI evolution, particularly in AI voice recognition and conversational technologies [17] - Sales grew 89% in Q3 2024, with revenue diversification reducing reliance on its largest customer [18] - SoundHound AI is not profitable and is burning through cash, with $75.7 million used in operating activities in the first nine months of 2024 [19] - The company's valuation is concerning, with a P/S ratio of 94, indicating an unsustainable recent climb in share price [20] - Historical trends suggest that early-stage innovations often face overestimation and eventual corrections, which could impact SoundHound AI [21]