Palantir stock has tanked over 20% from its all-time high but Jefferies analyst Brent Thill argues it could crash much further from current levels.

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.

Over the past five trading days, Palantir stock has fallen 15%, sparking hesitation among investors looking for a bottom. Earlier this month, the artificial intelligence software provider posted a strong earnings report that pushed its shares to record highs.

Dow Jones futures were little changed overnight, along with S&P 500 futures and Nasdaq futures. Meta PlatformsMETA reportedly has halted AI hiring. WalmartWMT earnings are due Thursday morning.The stock market had another mixed session,

This AI infrastructure play has delivered bigger gains than its larger peers since going public earlier this year.

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,

In the S&P 500, Analog Devices ADI took the lead with a gain of more than 4% while Target TGT weighed on the benchmark index with a loss of nearly 7%. The retailer triggered a sell rule by falling below its 50-day moving average in heavy volume and remained around 60% below its all-time high of 268.98.

Palantir's dual-engine model delivers exceptional growth, margins, and defensibility. Click here to see why PLTR stock is a Buy.