The S&amp;P 500 Information Technology Index is down -1.75% year to date and -2.53% over the past month, signaling a sketchy outlook for tech stocks in 2026, though not for all big sector names. As usual, artificial intelligence, especially in the software realm, is using up most of the tech industry’s oxygen.



“There’s a lot of optimism around AI, but also a lot of hype,” said Anthony Saglimbene, chief market strategist at Ameriprise, in a recent research note. “2026 will be more about the proof of AI. What’s the ROI on the hyperscalers that have been spending? Will they see profit growth continue to accelerate?”



Other market mavens, while not exactly dour on the technology side of the market, say investors need to temper their optimism in technology stocks, as the sector should take a breather in 2026.



“I expect the market to be ‘fine’ in 2026,” said David Jaffee, a former investment banker and founder of the trading platform BestStockStrategy.com. “That means positive results, but likely unable to match the outsized tech gains we saw in 2023, 2024, and 2025.”



As things slow down in 2026, here are the three big tech stocks to sell now.



The reality is that the indices have been masking broader weakness, Jaffee stated. “The incredible returns of the last three years have been driven primarily by a small group of companies, specifically in chips, AI, and Big Tech,” he said. “The ‘average’ stock has not participated to the same degree.”



However, Jaffee doesn’t see anything resembling a technology crash. 



“The structural shift toward AI and semiconductors is real; these technologies are becoming increasingly embedded in our daily lives and economy,” he said. ” Coupled with robust U.S. economic growth and investment, the floor for the market remains high. Investors should expect a year of consolidation or modest growth rather than the explosive rallies of the recent past.”



With the tech sector in the crosshairs in 2026, it’s a good time to kick some tires on your technology stock portfolio and replace likely losers with likely winners. That means, as Tony Soprano might say, some big industry names “have got to go.” These tech stocks lead the ‘sell’ list.



<h2>Palantir</h2>



One-year performance: 162.95%



While Denver, Colorado-based Palantir‘s (NASDAQ:PLTR) central operating systems provider has delivered over the past year, returning 163% for shareholders, the stock could be losing its luster.



“I’d consider selling highly valued, long-duration AI names with weak cash flow,” Dan Buckley, chief economic analyst at DayTrading.com, told Benzinga. “Stocks that price in more or less perfect execution and exponential growth don’t give much margin for error if AI adoption doesn’t meet expectations or the return on the spending disappoints. Palantir would be an example here as it trades at over 100 times its  revenue.”



PLTR shares have tailed off of late, losing -3.6% over the past month, suggesting that even strong execution may not justify a premium multiple if growth slows. Some big industry stock pickers think that high-multiple AI stocks often fall hardest during pullbacks, and that PLTR certainly qualifies in that regard.



In the first week of January, Ark Invest’s Cathy Wood raised eyebrows by selling 58,741 shares of Palantir. through its ARK Next Generation Internet ETF (BATS:ARKW). The transaction, valued at approximately $10.4 million, comes amid heightened geopolitical tensions and defense budget discussions.



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<h2>Apple</h2>



One-year performance: 9.37% 



Benzinga analysts say that while Apple’s (NASDAQ:AAPL) 2025 fourth-quarter sales were on target with estimates and guidance that suggest mid-to-high double-digit growth, its stock may be vulnerable in 2026 as growth slows and expectations remain high.



For starters, Apple’s recent financial performance highlights concerns, particularly a 3.6% year-over-year decline in sales from China, a crucial market for the company, Benzinga noted in its most recent ‘bear’ outlook.” Additionally, while gross margins remain stable at 47%, the company’s higher operating expenses signal potential pressure on profitability moving forward. Coupled with fears that iPhone sales may underperform and questions surrounding the sustainability of Apple’s valuation, these factors contribute to a negative outlook on the stock’s future growth potential.” 



Apple shares are currently trading at $259 per share, and the consensus bear outlook has AAPL sliding to around $200 per share in 2026. While no doubt Apple may remain a great company, 2026 could be unforgiving to mega-caps with slowing growth and limited upside surprise, especially as smartphone replacement cycles continue to lengthen, and as Apple’s AI strategy is largely defensive and ecosystem-based, and not a clear new revenue engine like cloud AI spending



Inflated pricing is adding more fuel to the fire. “Apple earns over $100 billion per year, but it’s also trading at around a $4 trillion valuation,” Buckley noted. “It’s banking on a super-cycle of device upgrades due to new AI features and double-digit growth in services revenue.”



AAPL shares are down -4.63% in 2026 and down -6.91% over the past month.



<h2>Salesforce</h2>



One-year performance: -18.03%



Any market player paying attention already knows, or should know, that Salesforce (NYSE:CRM) is in a sales slump, and that picture likely won’t brighten in 2026.



The company has made what appears to be a smart investment in AI agents (via its Agentforce platform) to handle routine operational tasks for CRM customers. The company’s leading light in that effort is Data 360, formerly monikered as Data Cloud, which organizes and disseminates data across Salesforce platforms and other cloud computing systems.



Yet while CRM’s early returns on its AI tools seem to be bearing some fruit, with revenues rising to $540 million in its most recent quarter, the company is experiencing enterprise spending pressures, as more clients consolidate vendors and limit already rising SaaS price boosts. Not helping matters is that, while Salesforce’s AI campaign is still in its infancy, its CRM functionality increasingly overlaps with broader productivity platforms.



There’s more. According to Benzinga analysis, Salesforce has experienced a notable decline in Sales Cloud growth, to 8.4% Y/Y, down from 9.5% in the previous quarter and substantially lower than the 11.2% growth reported the prior year, which plants another red flag on CRM’s turf.



<h2>The Takeaway on Three Tech Stocks to Sell in 2026</h2>



Other areas of concern in the technology realm include unprofitable software companies that are reliant on cheap capital. 



“Most estimates of the short-term neutral rate are 3-4% and the 10-year rates are 4-4.5%,” Buckley noted. “If rates are in a higher-for-longer situation, that exposes business models that depend on funding rather than earnings. Snowflake (NYSE:SNOW) and Datadog (NASDAQ:DDOG), for example, burn cash and have minimal to no earnings cushion.



Additionally, AI story stocks that lack defensible moats are another, especially if they’re selling AI narratives rather than differentiated products, which could be a big risk.



“The primary example here would be Tesla (NASDAQ:TSLA), a minor automaker that trades at a $1.4 trillion valuation,” Buckley added. “It’s trying to become a major autonomy player with vision-only L2 ADAS technology and has a longer-term humanoid robot project where there’s increasing competition and existing established leaders. The growth drivers are narrative-based and don’t currently contribute revenue.”



All of the above indicates that 2026 is unlikely to be another “buy everything tech” year. Instead, investors may need to be more selective, favoring companies with visible AI revenue, strong cash flow, and reasonable valuations.



Apple, Salesforce, and Palantir, in particular, are all high-quality businesses, but their stocks may struggle if growth slows and investors demand proof, not promises. For skittish investors, selling or even trimming some technology names could be a savvy way to curb downside risk and reposition for what looks like a more discipline-minded tech sector in 2026.



Photo Courtesy: Kris Hoobaer on Shutterstock.com

PLTR

Tech stocks are facing challenges, with the S&P 500 Information Technology Index down -1.75% YTD. Experts suggest caution, particularly with high-valued AI stocks like Palantir, which has seen a 162.95% return but may be losing appeal due to weak cash flow. Analysts predict a more subdued market in 2026, advising investors to reassess their portfolios. Apple is also under scrutiny, with concerns over declining sales in China and rising operating expenses, leading to a negative outlook for its stock performance in the coming year.

- The S&P 500 Information Technology Index has decreased by -1.75% year to date, indicating a challenging outlook for tech stocks in 2026.  
- Experts suggest cautious optimism around AI, highlighting potential slowdowns in growth for major companies like Apple, Palantir, and Salesforce, which may face pressures from high valuations and declining performance.  
- Investors are advised to reassess their technology portfolios, potentially selling high-multiple stocks to mitigate risk as the sector shifts toward more disciplined growth strategies.

3 Technology Stocks to Sell in 2026