Prior to reporting its fiscal third-quarter operating results in November, Nvidia's P/S ratio surpassed 30. As for Palantir, its trailing 12-month P/S ratio is currently 119, and that's not a typo. There's virtually no sales or earnings growth rate that can support such aggressive valuation premiums for these two AI darlings.

Conversations with more than a dozen strategists and investors on their 2026 outlooks reveal that Wall Street is not worried about an AI bubble, but wants to add portfolio protection just in case. Why it matters: Hedging was not very profitable in 2025,

More than 70% of respondents in a survey by Bloomberg Intelligence also said they expect AI adoption to lead to higher operating costs over the next three years. Most still anticipate productivity to rise more quickly, according to the survey of 151 senior employees in the financial services sector published Wednesday.

Astera Labs, Inc. (NASDAQ: ALAB) is one of the Hot AI Stocks on Wall Street’s Radar. On December 9, H.C. Wainwright analyst Gus Richard raised the price target on the stock to $195.00 (from $175.00) and reiterated a “Buy” rating.

Year to date, Palantir Technologies ( PLTR +3.34%) stock has returned 140% and Intel ( INTC +0.69%) stock has returned 101%. However, certain Wall Street analysts believe the stocks are wildly overvalued. Following are the most pessimistic 12-month forecasts.

Wall Street set records, even as a sell-off for Oracle and worries about a potential bubble in artificial intelligence technology weighed on the market.

Disney is making a $1B investment in OpenAI and signed a sweeping three-year licensing deal that allows OpenAI’s video model Sora to generate content using Disney’s intellectual properties.