CNBC "famous mouth" host: Wall Street is too obsessed with some highly valued technology stocks

CNBC host Jim Cramer pointed out that Wall Street is now too fixated on the high valuations of some technology and speculative stocks, and believes that this is also one of the reasons for the general decline in U.S. stocks on Tuesday. Despite the strong results of Palantir (PLTR. O), the stock price still fell by nearly 8%, dragging down the broader market's performance.
"The bigger problem is that when money managers are asked if valuations are too expensive, the first thing that comes to mind is high-flying speculative stocks, or companies in the high-growth AI sector, and they persuade you to stay away from the entire asset class," he says.
Falls in Palantir and other AI stocks sent stocks lower overall on Tuesday. The S & P 500 fell 1.17 percent, the Dow Jones Industries Average fell 0.53 percent, and the tech-heavy Nasdaq Composite tumbled 2.04 percent. Palantir's results beat market expectations and the outlook was solid, highlighting the growth of its AI business. But investors are widely concerned that the valuations of the tech giants that have driven the market to record highs are too large.
In Kramer's view, it is reasonable to think that Palantir itself is fine, just needs to "cool down for a while and grow to a level that matches its market value".