1. Palantir Technologies and CrowdStrike are both facing high valuations, which could lead to potential pressure on their stock prices. Palantir’s forward P/S ratio is at 67 times 2025 estimates and 49 times 2026 consensus, far exceeding industry norms. CrowdStrike, with a forward P/S multiple of nearly 25 times fiscal 2026 and 20 times fiscal 2027 forecasts, is also trading at a premium. While both companies show promise in AI and cybersecurity, their valuations may not be justified by current revenue growth trends. Investors should be cautious of investing in these high-priced stocks.
2. In a recent survey, 90% of investors planned to buy or hold AI stocks in 2026, but concerns about high valuations were prevalent. While some AI stocks trade at reasonable valuations, Palantir and CrowdStrike stand out with their expensive price tags. Palantir’s accelerating revenue growth is driven by its AI Platform and customer expansion, but its valuation is very high. CrowdStrike is experiencing growth with its next-gen AI solutions, but its revenue growth needs to accelerate to justify its valuation. Investors should carefully consider the risks associated with investing in these high-priced AI stocks.

Read more at Nasdaq: Investors Believe Overvaluation Is One of the Biggest Risks to the AI Story. Here Are 2 AI Stocks With the Frothiest Valuations.