2 Artificial Intelligence (AI) Stocks to Sell Before They Fall 40% and 55%, According to Wall Street Analysts

Palantir Technologies - Palantir's shares have nearly doubled in the past year, with a current price of $157.29, but analysts suggest it may be overvalued, with a target price of $70 indicating a 55% downside [1][7] - The company reported a 70% increase in revenue to $1.4 billion in Q4, marking the tenth consecutive quarter of acceleration, and a 79% increase in non-GAAP net income to $0.25 per diluted share [6] - Palantir's unique ontology-based software architecture provides a competitive advantage, distinguishing it from traditional analytics software [5][9] - The company has a market cap of $376 billion and a gross margin of 82.37%, but trades at a high valuation of 209 times adjusted earnings, despite projected earnings growth of 57% annually through 2027 [8] Micron Technology - Micron's shares have more than quadrupled in the past year, currently priced at $370.54, but analysts indicate a potential 40% downside with a target price of $225 [1][7] - The company specializes in DRAM and NAND memory products, crucial for AI, and reported a 56% revenue increase to $13.6 billion in Q1, with non-GAAP net income rising 167% to $4.78 per diluted share [10][12] - Micron gained market share in memory products, but this was largely due to a supply shortage rather than a competitive advantage, as memory chips are commoditized [11] - The market cap stands at $417 billion, with a gross margin of 45.53%, and trades at 33 times adjusted earnings, which may decline once the memory chip demand peaks [14]