Palantir Stock vs. Sandisk Stock: Wall Street Says Buy One and Sell the Other

Palantir Technologies (NASDAQ: PLTR) and Sandisk (NASDAQ: SNDK) have been major winners from the artificial intelligence boom. Palantir shares have added 1,650% since January 2023, and Sandisk shares have advanced 5,700% since being spun off from Western Digital in February 2025.

Today, Wall Street thinks Palantir is deeply undervalued, but most analysts consider Sandisk modestly overvalued, as follows:

• Among 33 analysts, Palantir has a median target price of $200 per share. That implies 79% upside from its current share price of $112.
• Among 28 analysts, Sandisk has a median target price of $1,702 per share. That implies 19% downside from its current share price of $2,109.

These median target prices suggest investors should buy Palantir and sell Sandisk. Here's what you need to know before making those decisions.

Image source: Getty Images.

Palantir Technologies: 79% upside implied by Wall Street's median target price

Palantir designs data integration and analytics platforms that help customers across the public and private sectors manage and make sense of complex information. The company also builds an adjunct artificial intelligence platform that connects data to large language models, enabling users to engage with data and automate workflows using natural language.

Palantir has received accolades from multiple industry experts. Dresner Advisory Service recognized the company as a leader in its most recent AI, data science, and machine learning market study. Similarly, the International Data Corporation ranked Palantir as a leader in its latest reports on AI-enabled source-to-pay software and decision intelligence platforms.

What separates Palantir from the competition? Most analytics tools focus on reporting and visualization, but Palantir's software revolves around a decision-making framework called an ontology. Think of the ontology as a digital twin of an organization's operations. It's more intuitive than a spreadsheet, so users can more easily surface actionable insights.

Palantir reported exceptional financial results in the first quarter. Revenue soared 85% to $1.6 billion, the 11th straight acceleration, and non-GAAP net income increased 153% to $0.33 per diluted share. "Our financial results now demonstrate a level of strength that dwarfs the performance of essentially every software company in history," said CEO Alex Karp.

However, despite trading 45% below its record high, Palantir is still a risky bet at its current valuation of 52 times sales. No other stock in the S&P 500 comes anywhere close to that multiple. CrowdStrike is the second most expensive stock in the index, at 35 times sales. That discrepancy is concerning. Investors should either avoid Palantir or at least keep their positions very small.

Sandisk: 19% downside implied by Wall Street's median target price

Sandisk develops storage devices based on NAND flash memory. Its product portfolio includes external and embedded flash drives for mobile devices, wearable devices, and automotive systems, as well as enterprise solid-state drives for data center and cloud computing companies.

NAND-based memory is crucial to artificial intelligence because it provides resilient long-term storage for training data and models. Prices have tripled over the past year because the AI infrastructure build-out has kept demand for NAND memory well ahead of supply, and Sandisk has benefited greatly from that dynamic.

In the March quarter, revenue increased 251% to $5.9 billion, driven by especially strong sales growth in the data center segment, though growth in the edge segment (i.e., personal computers, mobile devices, and automotive systems) was also impressive. Non-GAAP net income hit $23.41 per share, up from a loss of $0.30 per diluted share last year.

CEO David Goeckeler also said Sandisk has signed five multiyear customer contracts that cover more than a third of its production capacity for the next year. That marks a major shift in an industry that has historically revolved around short-term contracts. The memory chip shortage has become such an issue that hyperscalers are willing to sign longer deals to ensure supply visibility.

Memory chips are interchangeable commodities, so suppliers have traditionally competed on price. That dynamic led to boom-and-bust cycles. Prices would rise when demand exceeded supply, and prices would crater when supply inevitably overtook demand. The transition to long-term contracts could remove some of that cyclicality by locking in floor prices.

Nevertheless, Wall Street expects Sandisk's adjusted earnings to increase at 25% annually through fiscal 2029. That consensus assumes earnings fall sharply after the memory chip cycle peaks in 2028, and it makes the current valuation of 68 times earnings look expensive. Similar to my opinion on Palantir, I think investors should keep Sandisk positions small. Anyone with a large stake should consider selling shares.

Trevor Jennewine has positions in CrowdStrike and Palantir Technologies. The Motley Fool has positions in and recommends CrowdStrike, Palantir Technologies, and Western Digital. The Motley Fool has a disclosure policy.