Palantir Technologies stock just hit another record, but the lofty valuation of the defense-focused artificial-intelligence software company has analysts questioning whether it can go much higher. Palantir stock fell 1.

As for Palantir, nine Wall Street analysts have a neutral or negative rating on the stock, and only two -- Wedbush and Bank of America Securities -- have positive recommendations on the shares. The average price forecast implies a 25% decline for the stock over the next 12 months.

Palantir Technologies (NASDAQ: PLTR) and Amazon (NASDAQ: AMZN) are both heavily exposed to the artificial intelligence (AI) trend, and both are popular stocks. Among 28 analysts who follow Palantir, the average 12-month price target is $107 per share.