10 AI Stocks Analysts Are Watching Closely

6. Palantir Technologies Inc. (NASDAQ:PLTR)

Number of Hedge Fund Holders: 77

Palantir Technologies Inc. (NASDAQ:PLTR) is one the 10 AI Stocks Analysts Are Watching Closely. On August 18, Palantir stock received a cautious mention from Citron regarding the company’s stock valuation, marking the second time the firm has raised concerns.

The stock slipped amid the mention and recent remarks from OpenAI CEO Sam Altman who has warned that the AI market is in a bubble. Altman’s remarks have put a question mark over the sustainability of AI-related stock valuations.

Previously, the firm led by Andrew Left implied that Palantir may begin to look cheap at $40 per share. However, that view has since been updated, with the analyst now arguing that the stock would remain expensive even at that level.

The analysis by the short seller puts OpenAI and Palantir into comparison, highlighting that if Palantir were to trade at the same 17x price-to-revenue multiple as OpenAI (based on Bloomberg consensus estimates of $5.6 billion in 2026 revenue), its implied stock price would be about $40 per share.

Citron contends that even this price would mark Palantir as one of the most expensive SaaS stocks.

“OpenAI at $500B Puts Palantir at $40 — And That’s Generous “

Another concern that was highlighted is insider selling. The firm noted how CEO Alex Karp has sold nearly $2 billion in Palantir shares over the past two years, which makes him “one of tech’s most aggressive insider sellers.”

Palantir Technologies Inc. (NASDAQ:PLTR) is a leading provider of artificial intelligence systems.