Since the end of the 2022 bear market, several artificial intelligence (AI) stocks have transformed the technology landscape and generated huge profits for investors. Unsurprisingly, one of the top stocks in this category is: Nvidiahas returned over 1,640% since its mid-October 2022 low.
Unfortunately, such success did not automatically make all AI stocks a buy. In fact, given the state of stocks and companies, it may be time to part ways with some stocks, and these three names would likely be high on such a list.
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Palantir Technologies
surely, Palantir Technologies (NASDAQ:PLTR) It may seem like an odd choice for a “stocks to sell” list. Up nearly 33x from its 2022 low, the company's artificial intelligence platform (AIP) has delivered impressive productivity gains for several customers.
However, due to its success, there is no doubt that the company's stock price has entered bubble territory. The problem with bubbles is that stock prices can rise to very high levels and take years, even decades, to recover.
Although bubbles are usually identified after the fact, metrics appear to indicate a bubble is forming. Palantir has a price-to-earnings ratio of just over 450 times. Investors may ignore it, but a forward P/E ratio of around 270 and a price-to-sales (P/S) ratio of over 125 prove that the declining price-to-earnings ratio is no fluke. It's also likely a sign that investors should be cautious, given that investors often balk at Palantir's P/S ratio of 1/4 of sales.
In fact, revenue for the first nine months of 2025 was up 51% year over year. Amid this performance, Palantir stock certainly deserves to trade at a premium. Nevertheless, with the market pricing the stock beyond perfect, one has to question whether there is any short-term upside left for the stock.
C3.ai
C3.ai (NYSE:AI) Stocks have often attracted the attention of investors in recent years. The company has developed more than 130 software applications to help organizations rapidly adopt AI, and its tools are used by companies across a variety of industries.
Unfortunately, the company has been facing quite a few struggles, the latest of which was news this summer that the company's founder and CEO, Thomas Siebel, would be stepping down. He stepped down in September citing health issues, and current CEO Steven Ehikian faces a difficult turnaround task.
One of the issues that needs to be addressed is C3.ai's declining revenue. After announcing fiscal 2026 guidance six months ago at between $448 million and $485 million, the company lowered that guidance to between $290 million and $310 million at the end of the second quarter of fiscal 2026 (ending October 31).
As a result of this adjustment, revenue for the first half of FY2026 decreased by 20% compared to the same period last year. Additionally, operating expenses continue to far exceed revenues, with a loss of $221 million in the first two quarters of 2026, higher than a loss of $129 million in the year-ago period.
As a result, the stock price has fallen more than 60% compared to a year ago. This decline puts the company's P/S multiple at 5, the lowest level in two years and a level that may attract some investors. Still, the deteriorating financials and uncertainty about the company's direction under new management may leave some wondering whether C3.ai stock is worth the risk of holding.
righetti computing
righetti computing (NASDAQ:RGTI) is competing in the rapidly growing field of quantum computing, poised to become a next-generation AI player.
Righetti has a competitive advantage in developing faster technology. Unfortunately, this does not necessarily lead to the highest accuracy and can be a factor that causes Righetti to lose out to its competitors.
Moreover, not only small and medium-sized enterprises such as: ion Q People who compete in this field. alphabet and IBM is one of the megatech companies investing in quantum computing, generating enough free cash flow to invest in the necessary research and development.
This is not the case with Righetti. The company must issue stock periodically simply to fund its survival. Additionally, it may be losing out to its competitors, as its revenue for the first nine months of 2025 was just $5.2 million, down 39% compared to the same period in 2024.
This decrease, along with a $149 million change in the fair value of our derivative warrant liability, resulted in a net loss of $198 million for the first three quarters of this year. In comparison, the company suffered a loss of $48 million during the same period in 2024.
Additionally, while Righetti benefited from rising stock prices, the stock is now down nearly 60% from its October 2025 high. Considering declining sales and a price-to-book multiple of 22x, this stock appears to offer investors more risk than return.
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Will Healy has no position in any stocks mentioned. The Motley Fool has positions in and recommends Alphabet, International Business Machines, IonQ, Nvidia, and Palantir Technologies. The Motley Fool recommends C3.ai. The Motley Fool has a disclosure policy.
