Many artificial intelligence (AI) stocks have generated great returns for investors over the past year. But along the way, that has resulted in some stocks reaching absurdly high valuations. In some cases, investors are paying massive premiums for future growth.

High valuations may sometimes be warranted, but in some situations, the premium investors are paying may simply be far too high, putting them at risk for corrections down the road. Three of the most expensive AI stocks to own right now are Nvidia (NASDAQ: NVDA), SoundHound AI (NASDAQ: SOUN), and MicroStrategy Incorporated (NASDAQ: MSTR). Are these shares worth their inflated valuations, or is it time to step away from these high-priced stocks?

Chipmaker Nvidia has been symbolic of AI's meteoric rise in popularity over the past year. At more than $2 trillion, the stock's market cap has soared to new heights. And unsurprisingly, investors are paying a big premium for a piece of the business.

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Source Fool.com