Investors take note: This AI stock that rose 360% in 2024 could go bust in 2025, here's why

In terms of AI stocks, the major perception is that Wall Street is currently riding on the success of Nvidia, Meta and Google, but the reality is that there are some of the other top AI stocks that are also at the helm of things, with Palantir Technologies being one of the biggest examples of the same.

Palantir Technologies to take a big hit at Wall Street in 2025?

Palantir Technologies has had the best year among all other US stocks on the S&P 500 stock index in the past year, according to The Motley Fool's report, and has surged by an eye-popping 360% throughout 2024, which is a record in itself. However, there are certain similarities to its growth, with the stock market bubble that went bursting in the year 2000.

Will the AI overhype die down soon?

When the Internet first arrived in 1999, there was a massive craze about it being the future of the world in the field of communications and technology. As a result, Microsoft's stock began taking a sudden surge, that ultimately came to a brutal halt when the stock market bubble burst in the year 2000.


There are chances that something similar could happen when he AI overhype dies down across the world, suggest reports. This could create major problems for stocks like Palantir Technologies, who have outperformed themselves at Wall Street, but their fundamentals do not match their exponential stock growth.

FAQs:

Is Palantir Technologies a profitable company?
Palantir Technologies has recently transitioned from being unprofitable to a profitable company. In the past, they focused heavily on growth and investing in their platform, which led to losses.

Is Palantir a publicly traded company?
Yes, Palantir Technologies Inc. is a publicly traded company. It went public on the New York Stock Exchange in September 2020, according to reports.