2 High-Flying AI Stocks I'd Sell Before 2026 Arrives

Core Insights - Positioning investment portfolios for 2026 is crucial, with a focus on selling stocks that have reached their full potential to lock in gains and free up cash [1] Group 1: Palantir - Palantir's AI-powered data analytics software has seen significant demand, resulting in a 63% year-over-year revenue increase in Q3 and a profit margin of 40% [4] - Despite strong business fundamentals, Palantir's stock is trading at an excessive valuation of 259 times forward earnings and 123 times sales, which is significantly higher than comparable companies like Nvidia [5] - Analysts predict a slowdown in revenue growth for Palantir, with expectations of 41% growth in 2026, down from 54% in 2025, indicating potential risks for the stock price [6] Group 2: BigBear.ai - BigBear.ai, a smaller AI stock, is facing a more severe issue as its revenue is shrinking, despite the overall demand for AI software [7] - The company focuses on providing custom AI solutions to the U.S. government and related sectors, but its lack of growth raises concerns about its future performance [8]