Shares of Palantir and Intel have more than doubled year to date, but certain Wall Street analysts believe they are extremely overvalued. Palantir is a leader in AI platforms but the most expensive stock in the S&P 500. Intel won a major customer for its foundry business but is losing market share and is expensive by historical standards.

Rishi Jaluria at RBC Capital set Palantir’s target price at $50 per share, implying a 72% downside. Matt Bryson at Wedbush and Amanda Tan at DBS Bank set Intel’s target price at $20 per share, implying a 50% downside. Investors should be cautious about Palantir and Intel due to their overvaluation.

Palantir builds AI and machine learning platforms, recognized as the most capable by Forrester Research. Its revenue rose 63% to $1.1 billion in Q3, but shares trade at 160 times sales, making it the most expensive S&P 500 stock. Despite its strong position, its valuation seems unsustainable, according to analysts.

Intel is the CPU market leader but has lost market share to competitors. The company recently won a major customer for its foundry business, but its history of execution missteps and high valuation are reasons for investors to be cautious. Intel shares currently trade at 3.3 times sales, a premium to historical averages.

Read more at Nasdaq: 2 Popular Artificial Intelligence (AI) Stocks to Sell Before They Fall 50% and 72% in 2026, According to Wall Street Analysts