2 Popular AI Stocks to Sell Before They Fall 53% and 58%, According to Wall Street Analysts

Two Wall Street analysts have issued aggressive sell ratings on PLTR and SPCX, warning that both AI-linked stocks face steep declines from current levels.

Jefferies analyst Brent Thill maintains a sell rating on PLTR with a price target implying 53% downside. Thill flags the company's 68x sales valuation as extreme and cites concerns about underinvestment that could pressure future growth. The valuation multiple stands far above traditional software peers.

Morningstar analyst Nicolas Owens rates SPCX a sell with a 58% downside target, pointing to a 94x sales valuation that prices in near-perfect execution. Owens warns the company continues to burn cash at a rapid pace, creating risk for equity holders if operational momentum falters.

Both analysts argue the stocks have run well ahead of fundamental support despite strong recent operational performance. The sell calls represent outlier views on Wall Street, where bullish sentiment has dominated coverage of artificial intelligence investments.