Analyst identifies Palantir, AMD, and Apple as overvalued AI stocks, citing high forward price-to-earnings ratios relative to growth prospects.

Palantir trades at 98 times forward earnings with Wall Street expecting 80% growth next quarter, 69% growth in the quarter after that, 73% growth overall in 2026, and 45% growth in 2027. To reach a reasonable valuation range, Palantir would need to triple its earnings beyond 2026's results and sustain 45% growth for three years.

AMD trades near Palantir's valuation level but grows far more slowly at a 35% rate that management expects will persist over the next five years, making its stock valuation suspect relative to growth.

Apple has the slowest revenue and earnings-per-share growth of its tech peers (for reference, Nvidia grew revenue and earnings per share by 85% and 213%, respectively), yet commands a premium valuation typically reserved for faster growers, making it poorly positioned to match returns over the next few years.