Ai Stocks May Plunge

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Ai Stocks May Plunge

These AI Stocks May Plunge Over The Next Few Years

AI has remained the hottest trend in the US stock market over the last few years. Analysts think AI spending will remain high for the next few years, and the AI market could be worth trillions of dollars.

While the optimism over the AI market remains high, analysts think there are two AI stocks that can drop heavily. These two stocks are Palantir and Tesla.

Palantir Technologies

Analysts at Jefferies think Palantir's share price will drop by 59%. A quick look at Palantir's history tells us that it is one of those companies that benefited the most from AI.

Since 2022, the Palantir share price has gone up by 2300%. Gains of this magnitude are not something you see very often in the stock market.

The Gotham platform is what made Palantir so famous. The US government and other clients use this platform to gain access to AI and machine learning capabilities.

Palantir already has multi-year deals with its clients. That's the key thing that allows Palantir to maintain double-digit growth for the long term.

However, analysts think Palantir won't be able to sustain a high growth rate for much longer. The rising competition and weak international growth can pose major risks for Palantir.

The P/S ratio of Palantir stock is near 82 so far in 2026. A quick look at history tells us that no tech stock has managed to sustain a P/S ratio higher than 30 in the long term.

Tesla

Another company that stands to lose in the long run is Tesla. The company also relies heavily on AI for its self-driving software. The AI will also be integral for the Optimus robot the company is making.

The company is already making a profit from its EV business. Meanwhile, the company has also diversified its income stream. The company is now working on energy generation, energy storage, and the Optimus robot.

According to the founder of GLJ Research, the Tesla stock price can plummet by 93% from its current levels. This comes at a time when Tesla's robotaxi is already working in many states. The company is also planning to expand its operations.

One reason why analysts think Tesla stock price will tank has to do with FSD. The self-driving technology still has not advanced as fast as the company forecasted.

Also, the expected sales growth of Tesla in the next two years will be in the low double digits. Meanwhile, the forward P/E of Tesla stock is 172. This clearly shows that the Tesla valuation is way overstretched.

If the Optimus robot fails or the self-driving tech fails to become the next big thing, it would be enough to send the Tesla stock price crashing down.

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