The sale comes as a Morgan Stanley analyst cautioned that Palantir is “trading too far ahead” of its intrinsic value as it looks to take advantage of the generative AI boom.

Shares of Palantir (PLTR) dropped more than 5% on Monday as the stock reacted to a new rating from Wall Street. Analysts from Morgan Stanley re-initiated coverage of Palantir with a “sell” recommendation.

Palantir Technologies is currently worth $181.9 billion, but several Wall Street analysts think Arm will surpass that figure in 2025. Arm CPUs have long been the industry standard in smartphones, but the company has been gaining market share in data center servers.

Palantir Technologies Inc. PLTR stock had an incredible 2024. The company was not only added to the S&P 500 in 2024, but its 340% return made it the index's best-performing stock. The inclusion boosted demand for its shares,