{"id":249498,"date":"2026-01-21T07:04:12","date_gmt":"2026-01-21T07:04:12","guid":{"rendered":"https:\/\/www.newsbeep.com\/il\/249498\/"},"modified":"2026-01-21T07:04:12","modified_gmt":"2026-01-21T07:04:12","slug":"2-popular-ai-stocks-to-sell-before-they-drop-70-and-60-in-2026-according-to-wall-street-analysts","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/il\/249498\/","title":{"rendered":"2 Popular AI Stocks to Sell Before They Drop 70% and 60% in 2026, According to Wall Street Analysts"},"content":{"rendered":"<p>Future performance could look very different from recent performance for these two tech companies.<\/p>\n<p>Palantir Technologies (<a href=\"https:\/\/www.fool.com\/quote\/nasdaq\/pltr\/\" class=\"font-bold hover:underline\" rel=\"nofollow noopener\" target=\"_blank\">PLTR<\/a> 1.47%) and Intel (<a href=\"https:\/\/www.fool.com\/quote\/nasdaq\/intc\/\" class=\"font-bold hover:underline\" rel=\"nofollow noopener\" target=\"_blank\">INTC<\/a> +3.35%) both had impressive returns in 2025, finishing the year up 145% and 84%, respectively. These were some of the highest returns from S&amp;P 500 companies. Unfortunately, some Wall Street analysts think the party will be ending soon for these stocks.<\/p>\n<p>How their stocks continue to perform remains to be seen, but if they drop to the projected targets, it would spell bad news for current investors. Let&#8217;s take a look at a couple of high-level reasons why it could happen.<\/p>\n<p><img alt=\"The Palantir logo on a wall.\" loading=\"lazy\" width=\"880\" height=\"587\" decoding=\"async\" data-nimg=\"1\" class=\"h-auto max-w-full rounded object-contain\" style=\"color:transparent\"   src=\"https:\/\/www.newsbeep.com\/il\/wp-content\/uploads\/2026\/01\/1768979050_637_.jpeg\"\/><\/p>\n<p class=\"caption\">Image source: Palantir.<\/p>\n<p>1. Palantir<\/p>\n<p>Palantir develops artificial intelligence (AI) software that helps governments, institutions, and businesses organize and analyze vast amounts of data. What started with software used only by governments has developed into a budding commercial business. Palantir&#8217;s U.S. commercial segment has been its fastest-growing business in recent quarters.<\/p>\n<p>Business performance aside, an analyst at RBC Capital has set Palantir&#8217;s share price target at $50, a 70% drop from its latest closing price of nearly $171.<\/p>\n<p><img alt=\"Palantir Technologies Stock Quote\" loading=\"lazy\" width=\"64\" height=\"64\" decoding=\"async\" data-nimg=\"1\" class=\"w-full flex-none object-contain\" style=\"color:transparent\"  src=\"https:\/\/www.newsbeep.com\/il\/wp-content\/uploads\/2026\/01\/1768979051_558_.png\"\/><\/p>\n<p>Today&#8217;s Change<\/p>\n<p>(-1.47%) $-2.52<\/p>\n<p>Current Price<\/p>\n<p>$168.44<\/p>\n<p>Key Data Points<\/p>\n<p>Market Cap<\/p>\n<p>$402B<\/p>\n<p>Day&#8217;s Range<\/p>\n<p>$166.25 &#8211; $171.95<\/p>\n<p>52wk Range<\/p>\n<p>$66.12 &#8211; $207.52<\/p>\n<p>Volume<\/p>\n<p>1.1M<\/p>\n<p>Avg Vol<\/p>\n<p>46M<\/p>\n<p>Gross Margin<\/p>\n<p>80.81%<\/p>\n<p>Much of the skepticism surrounding Palantir&#8217;s stock comes from its valuation. It&#8217;s currently trading at <a href=\"https:\/\/www.fool.com\/terms\/f\/forward-pe\/\" class=\"text-cyan-900 hover:text-cyan-800\" rel=\"nofollow noopener\" target=\"_blank\">169 times its projected earnings<\/a> for the next year (as of Jan. 20), which is extremely expensive by virtually all standards. It&#8217;s noticeably higher than the valuation of even some of the world&#8217;s fastest-growing tech giants.<\/p>\n<p>For Palantir to even remotely justify its valuation (and I do mean remotely), it would need to maintain triple-digit percentage growth for many years. And that&#8217;s very unlikely to happen.<\/p>\n<p><a href=\"https:\/\/ycharts.com\/companies\/PLTR\/chart\/\" class=\"text-cyan-900 hover:text-cyan-800\" target=\"_blank\" rel=\"noopener noreferrer nofollow\"><img alt=\"PLTR PE Ratio (Forward) Chart\" loading=\"lazy\" width=\"720\" height=\"507\" decoding=\"async\" data-nimg=\"1\" class=\"h-auto max-w-full rounded object-contain\" style=\"color:transparent;max-width:720px\"   src=\"https:\/\/www.newsbeep.com\/il\/wp-content\/uploads\/2026\/01\/c7cb1842d70a44fb4bd2a7104d8e846e.png\"\/><\/a><\/p>\n<p class=\"caption\">Data by <a href=\"https:\/\/ycharts.com\" class=\"text-cyan-900 hover:text-cyan-800\" target=\"_blank\" rel=\"noopener noreferrer nofollow\">YCharts.<\/a><\/p>\n<p>2. Intel<\/p>\n<p>Intel&#8217;s 2025 stock performance was a much-needed turnaround from its 2024 performance. It seems investors took a liking to the increased demand for its <a href=\"https:\/\/www.fool.com\/terms\/c\/cpu\/\" class=\"text-cyan-900 hover:text-cyan-800\" rel=\"nofollow noopener\" target=\"_blank\">central processing units<\/a>, which help power data centers crucial to the <a href=\"https:\/\/www.fool.com\/investing\/2026\/01\/15\/got-3000-3-artificial-intelligence-ai-stocks-to-bu\/\" class=\"text-cyan-900 hover:text-cyan-800\" rel=\"nofollow noopener\" target=\"_blank\">current AI boom<\/a>.<\/p>\n<p>This demand didn&#8217;t stop an analyst at Morgan Stanley from setting Intel&#8217;s bear-case share price target at $19, a 60% decline from its latest price around $47 per share.<\/p>\n<p><img alt=\"Intel Stock Quote\" loading=\"lazy\" width=\"64\" height=\"64\" decoding=\"async\" data-nimg=\"1\" class=\"w-full flex-none object-contain\" style=\"color:transparent\"  src=\"https:\/\/www.newsbeep.com\/il\/wp-content\/uploads\/2026\/01\/1768979052_871_.png\"\/><\/p>\n<p>Today&#8217;s Change<\/p>\n<p>(3.35%) $1.57<\/p>\n<p>Current Price<\/p>\n<p>$48.53<\/p>\n<p>Key Data Points<\/p>\n<p>Market Cap<\/p>\n<p>$242B<\/p>\n<p>Day&#8217;s Range<\/p>\n<p>$47.00 &#8211; $50.22<\/p>\n<p>52wk Range<\/p>\n<p>$17.66 &#8211; $50.39<\/p>\n<p>Volume<\/p>\n<p>4.8M<\/p>\n<p>Avg Vol<\/p>\n<p>93M<\/p>\n<p>Gross Margin<\/p>\n<p>35.58%<\/p>\n<p>One problem with Intel is that it hasn&#8217;t made much meaningful progress in getting its <a href=\"https:\/\/www.fool.com\/investing\/stock-market\/market-sectors\/information-technology\/semiconductor-stocks\/\" class=\"text-cyan-900 hover:text-cyan-800\" rel=\"nofollow noopener\" target=\"_blank\">chip manufacturing business<\/a> anywhere close to industry leader Taiwan Semiconductor Manufacturing. With Intel&#8217;s delays, unexpected increased costs, and lower yields (the percentage of chips that work as intended), major companies would rather go to TSMC because of its efficiency and proven track record.<\/p>\n<p>If Intel wants sustained success, it will need to improve its manufacturing technology and become No. 2 in the industry. It won&#8217;t catch up to TSMC&#8217;s scale, but it should try to compete on the same level as Samsung. So far, though, it hasn&#8217;t shown signs of making that happen.<\/p>\n<p><a href=\"https:\/\/www.fool.com\/author\/20466\/\" class=\"text-cyan-900 hover:text-cyan-800\" rel=\"nofollow noopener\" target=\"_blank\">Stefon Walters<\/a> has positions in Taiwan Semiconductor Manufacturing. The Motley Fool has positions in and recommends Intel, Palantir Technologies, and Taiwan Semiconductor Manufacturing. The Motley Fool has a <a href=\"https:\/\/www.fool.com\/legal\/fool-disclosure-policy\/\" class=\"text-cyan-900 hover:text-cyan-800\" rel=\"nofollow noopener\" target=\"_blank\">disclosure policy<\/a>.<\/p>\n","protected":false},"excerpt":{"rendered":"Future performance could look very different from recent performance for these two tech companies. Palantir Technologies (PLTR 1.47%)&hellip;\n","protected":false},"author":2,"featured_media":249499,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[20],"tags":[345,343,344,85,46,125],"class_list":["post-249498","post","type-post","status-publish","format-standard","has-post-thumbnail","category-artificial-intelligence","tag-ai","tag-artificial-intelligence","tag-artificialintelligence","tag-il","tag-israel","tag-technology"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/249498","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/comments?post=249498"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/249498\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media\/249499"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media?parent=249498"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/categories?post=249498"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/tags?post=249498"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}