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CNBC's prominent host: Wall Street is too fixated on some overvalued tech stocks.

CNBC host Jim Cramer pointed out that Wall Street is now too obsessed with the high valuations of some technology stocks and speculative stocks, which he believes is one of the reasons for the general decline in US stocks on Tuesday. Despite Palantir's strong performance, its stock price still fell by nearly 8%, dragging down the overall market performance.

He said: "The bigger issue is that when fund managers are asked if valuations are too high, the first thing they think of is those soaring speculative stocks, or companies in the high-growth AI sector, so they will advise you to stay away from the entire asset class."

On Tuesday, the decline in Palantir and other AI concept stocks led to a general decline in the stock market. The S&P 500 fell by 1.17%, the Dow Jones Industrial Average fell by 0.53%, and the tech-heavy Nasdaq Composite Index plummeted by 2.04%. Palantir's performance exceeded market expectations, its outlook was solid, and it emphasized the growth of its AI business. However, investors are generally concerned that the valuations of tech giants that have been driving the market to new highs are too high.

In Cramer's view, the reasonable approach is that Palantir itself is not the problem, it just needs to "cool off for a while and grow to a level that matches its market value."

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