Will AI create the world’s first trillionaire? Our team just released a report on a little-known company, called an “Indispensable Monopoly,” providing the critical technology Nvidia and Intel both need. <\/p>\n
Continue \u00bb<\/a> <\/p>\n Many AI stocks are incredibly overvalued today, and one of the best examples of that is Palantir Technologies. Strong growth and ties to the U.S. government have made this a bit of a safe haven stock for tech investors in recent years. The company is involved in data analytics, and its AI platform has provided companies with significant opportunities for enhancing their businesses and improving efficiency.<\/p>\n The problem with Palantir is that although its shares are down 23% this year, the stock still isn’t cheap<\/a>; it trades at a price-to-earnings (P\/E) multiple of more than 150. Buying a stock at that kind of valuation, regardless of how promising its growth prospects are, can open you up to some considerable downside risk. While not all AI stocks are as expensive as Palantir, many are, and they’re priced on rosy expectations ahead, which is why I’ve avoided them.<\/p>\n Following Buffett’s advice can help protect your portfolio <\/p>\n Taking a cautious approach may result in you missing out on gains and sitting on the sidelines while others profit from the excitement around AI stocks. But investing is about the long term, and investing in quality stocks and hanging on for years is where the most significant gains can come from. By considering Buffett’s advice and his rule of not trying to lose money when investing, you can make more sound, safe investing decisions. While that may not be all that exciting, particularly with growth stocks taking off in value, it can help ensure you focus on a balanced investing strategy.<\/p>\n Tech stocks have a volatile history, and when sentiment sours on them, they can quickly go into a free fall. Regardless of how many investing years you have left, I think it’s important not to overlook valuations, as doing so could leave your portfolio vulnerable to significant risk later on.<\/p>\n Should you buy stock in Palantir Technologies right now? <\/p>\n Before you buy stock in Palantir Technologies, consider this:<\/p>\n The Motley Fool Stock Advisor analyst team just identified what they believe are the\u00a010 best stocks<\/a> for investors to buy now\u2026 and Palantir Technologies wasn\u2019t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.<\/p>\n Consider when Netflix made this list on December 17, 2004… if you invested $1,000 at the time of our recommendation,\u00a0you\u2019d have $477,813!* Or when Nvidia made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation, you\u2019d have $1,320,088!*<\/p>\n Now, it\u2019s worth noting\u00a0Stock Advisor\u2019s total average return is 986% \u2014 a market-crushing outperformance compared to 208% for the S&P 500.\u00a0Don’t miss the latest top 10 list, available with\u00a0Stock Advisor, and join an investing community built by individual investors for individual investors.<\/p>\n See the 10 stocks \u00bb<\/a><\/p>\n *Stock Advisor returns as of May 25, 2026. <\/p>\n David Jagielski, CPA<\/a> has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Broadcom, Nvidia, and Palantir Technologies. The Motley Fool has a disclosure policy<\/a>.<\/p>\n![\"Person](\"https:\/\/www.newsbeep.com\/ie\/wp-content\/uploads\/2026\/05\/c27cc8f6deb26205059757ebe8e3f5a2.jpeg\")
Image source: Getty Images. Ignoring valuations can make you vulnerable to losses <\/p>\n