"Is there going to be an AI wobble at some point?" Tony Yoseloff told Goldman Sachs. "There's a little bit of a prisoner's dilemma, let's call it."

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.