From Nasdaq:

1. Arm Holdings has seen its stock price soar over the past year, driven by strong momentum in AI. However, Wall Street is predicting a potential 20% drop in the stock price over the next 12 months due to concerns about valuation.

2. Palantir Technologies, a leader in AI software, has also shown impressive growth with its stock price climbing nearly 50% in the last year. Despite positive quarterly results and a strong outlook, Wall Street is not as optimistic, with an average price target reflecting a potential 20% downside.

3. While investors remain excited about AI stocks like Arm Holdings and Palantir Technologies, analysts warn of frothy valuations. The Motley Fool’s Stock Advisor team suggests considering other AI stocks that may offer better growth potential. Arm Holdings, while promising, may not be among the top 10 stocks to buy now according to their analysts.



Read more at Nasdaq: These High-Flying Artificial Intelligence (AI) Stocks Could Sink 20% or More Over the Next 12 Months, According to Wall Street