Wall Street analysts raised concerns about Palantir's elevated valuation and famed hedge fund manager Michael Burry revealed a short position.

Many analysts are cautious about Palantir's valuation, but several are bullish on its growing commercial businesses as AI contracts ramp up.

While praising Palantir's strong business, analysts remained concerned over the stock's elevated valuation.

"The idea that chips and ontology is what you want to short is bats--- crazy," Alex Karp said.

One analyst suggested stocks may be suffering from “rally exhaustion.”

Wall Street analysts raised concerns about Palantir's elevated valuation and famed hedge fund manager Michael Burry revealed a short position.

“Sometimes, we see bubbles,” Burry said in a recent X post. “Sometimes, there is something to do about it. Sometimes, the only winning move is not to play.”

The tech giant’s shares fell Tuesday on valuation concerns, but CEO Alex Karp insists investors are “fighting for the right side of what should work in this country.”

Despite the splash his disclosure made, the famed "Big Short" investor is likely sitting on losses from those bearish bets.