Prediction: 3 Stocks That Will Be Worth More Than Palantir 5 Years From Now

Palantir Technologies (NASDAQ: PLTR) has been in sizzling form on the stock market over the past three years, jumping by an incredible 1,140% during this period and outperforming the Nasdaq Composite's returns of 101% by a massive margin.

The red-hot rally in Palantir stock in recent years has brought its market cap to $440 billion. The good news for Palantir investors is that it can deliver more gains in the long run amid the growing demand for artificial intelligence (AI) software. After all, Palantir is a key player in this space, and its growth has been accelerating. However, there is a major factor that could limit more upside in Palantir stock -- the valuation.

Palantir's earnings multiple of 152 and sales multiple of 74 clearly tell us that the stock isn't cheap. So, the company will have to sustain terrific growth to justify these multiples. This is precisely why I think that Dell Technologies (NYSE: DELL), Lam Research (NASDAQ: LRCX), and Sandisk (NASDAQ: SNDK) are in a better position to deliver more upside over the next five years compared to Palantir, which could make them more valuable in terms of market cap.

Let's see why that may be the case.

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Dell's cheap valuation and accelerating growth point to a big surge in the stock price

With a market cap of $366 billion, Dell's market cap is just 20% lower than Palantir's. The technology giant could easily close that gap for two reasons -- its fantastic growth and attractive valuation.

Dell's revenue increased 58% year over year in the second quarter of fiscal 2027 to $47 billion. This phenomenal growth was driven by the robust demand for its AI servers. The company expects to deliver a 69% revenue increase in fiscal 2027, along with a 148% increase in earnings per share (EPS) to $25.50. Palantir, meanwhile, is poised to clock an 114% EPS increase this year, according to consensus estimates.

Given that Dell trades at a significantly cheaper 33 times earnings and just 2.5 times sales, it has the potential to outperform Palantir over the long run. Moreover, Dell stock can outperform Palantir over the next five years due to the massive opportunity in AI servers. Goldman Sachs expects the global server market's revenue to reach $1.5 trillion in 2030. Dell reportedly controls 29% of this market.

A similar market share in 2030 would take Dell's server revenue to $435 billion, a massive improvement over the $60.8 billion it generated from its infrastructure business in the previous fiscal year. So, Dell could be rewarded with a premium valuation going forward, which is why I think it can outperform Palantir and become a more valuable company in the next five years.

Lam Research's central role in AI infrastructure points to more gains

Lam Research's market cap stands at $378 billion, and the good news is that the stock is quite attractively valued as well. Lam trades at 50 times trailing earnings, while the forward earnings multiple of 31 points to a strong increase in earnings.

Analysts are forecasting a 63% increase in Lam's EPS this fiscal year. Importantly, it can sustain such impressive growth over the next five years, driven by secular growth in the semiconductor manufacturing equipment market.

Lam's semiconductor equipment is in strong demand from both memory manufacturers and foundry/logic customers. This explains why Lam's growth rate has been picking up lately. The company anticipates a 52% year-over-year increase in revenue in the current quarter, along with a 71% spike in adjusted EPS.

Those numbers are better than the 26% revenue increase and the 35% increase in net income in the recently concluded fiscal 2026. A major reason Lam can maintain solid growth over the next five years is a shortage of semiconductors, especially memory chips. Deloitte expects chipmakers to spend $260 billion as capital expenditure next year, up from $143 billion in 2025.

The momentum can continue until 2030, as Deloitte notes that tight supply conditions could persist through the end of the decade, potentially encouraging investment in additional manufacturing equipment. As a result, Lam stock seems primed to deliver significant upside over the next five years, which could make it a bigger company than Palantir given its cheaper valuation.

Sandisk is riding the memory boom

Sandisk stock has crushed Palantir on the stock market over the past year, with astronomical gains of 1,630%. This surge has brought Sandisk's market cap to $259 billion, which is 70% lower than Palantir's market cap.

However, Sandisk can easily close this gap due to its exponential earnings growth and attractive valuation. For instance, analysts expect Sandisk's earnings to triple in the current fiscal year, which is well above the 114% growth Palantir is anticipated to deliver. Moreover, Sandisk operates in a market where demand is exceeding supply substantially, leading to a big jump in both revenue and earnings.

Even better, Sandisk is poised to continue benefiting from the supply shortage of NAND flash chips beyond 2030, as evident from the company's long-term forecast. With the stock trading at an attractive 8 times forward earnings, well below Palantir's forward earnings multiple of 80, Sandisk is in a better position to deliver bigger gains owing to its stronger growth potential and cheaper valuation.

So, there is a strong likelihood that Sandisk will continue to crush Palantir due to a solid revenue pipeline and a favorable pricing environment. These factors could help this memory stock become a multibagger, potentially overtaking Palantir's market cap within five years.

Harsh Chauhan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Goldman Sachs Group, Lam Research, and Palantir Technologies. The Motley Fool has a disclosure policy.