Palantir ( PLTR -5.81%) stock is getting hit with another substantial round of sell-offs Wednesday on the heels of a big valuation pullback in yesterday's trading. The artificial intelligence ( AI) leader's share price was down 7% as of 11:15 a.m. ET and had been down as much as 9.8% earlier in trading.

Palantir (PLTR) has been one of the hottest S&P 500 Index ($SPX) stocks over the past year, rising 378%. Moreover, it has more than doubled so far in 2025. However, the stock has recently come under pressure,

That rise has made Palantir extremely pricy. Shares now trade at a multiple of 214 times expected earnings over the next 12 months, compared to an S&P 500 average of 22 times earn

Palantir stock continues to sink as investors pull back more broadly from AI stocks due to valuation concerns. Here’s why PLTR shares are not worth buying on the dip.

Palantir stock sinks below a key technical level, extending a steep two-day drop. History suggests buying the dip could pay off—big.

Palantir stock (NASDAQ: PLTR) took a sharp hit on Wednesday, falling about 7% as high-valuation tech stocks pulled back across the market. The AI and data analytics company had hit record highs earlier in the month,

Andrew Left argues that investors have overhyped Palantir stock, and its valuation pales in comparison to a true AI leader like OpenAI.

Last week, Citron's Andrew Left announced a short position against Palantir, suggesting that the stock was "beyond overvalued" at nearly $190 per share. Citron later argued that Palantir stock should be trading at $40. Palantir shares continued to plummet on Wednesday and were down more than 20% over the past five days.

This AI infrastructure play has delivered bigger gains than its larger peers since going public earlier this year.