Tyler Radke, Citi senior equity research analyst, joins 'Squawk Box' to discuss Palantir's stock performance, who their top competitors are, and more.

Palantir ( PLTR -5.81%) stock is getting hit with another substantial round of sell-offs Wednesday on the heels of a big valuation pullback in yesterday's trading. The artificial intelligence ( AI) leader's share price was down 7% as of 11:15 a.m. ET and had been down as much as 9.8% earlier in trading.

That rise has made Palantir extremely pricy. Shares now trade at a multiple of 214 times expected earnings over the next 12 months, compared to an S&P 500 average of 22 times earn

Palantir stands out with its scalable AI impact, unique Ontology platform, and defensible moat. Read why I think PLTR stock is a buy-on-pullback opportunity.

In recent days, Palantir's stock has been showing signs of slowing down. After hitting a new all-time high of $190 on Aug. 12, it has proceeded to trade lower. By Monday, the AI stock would close at just over $174 -- down 8% from its recent high.

Palantir stock (NASDAQ: PLTR) took a sharp hit on Wednesday, falling about 7% as high-valuation tech stocks pulled back across the market. The AI and data analytics company had hit record highs earlier in the month,

AI software firm Palantir saw strong quarterly revenue, but its price-to-earnings ratio could be a warning sign for investors.

Two hedge fund managers with a track record for market beating returns sold Nvidia and bought Palantir in the second quarter.

Andrew Left argues that investors have overhyped Palantir stock, and its valuation pales in comparison to a true AI leader like OpenAI.