Palantir Technologies (NASDAQ: PLTR) and SanDisk (NASDAQ: SNDK) are currently reaping the benefits of the artificial intelligence surge. Since January 2023, Palantir stock has skyrocketed by 1,650%, while SanDisk has seen a staggering 5,700% increase since 2025.
At the moment, Wall Street tends to view Palantir as significantly undervalued, whereas most analysts perceive SanDisk as moderately overvalued.
Remember Nvidia back in 2009? A similar unusual signal is surfacing now. In 2009, a “double down” signal emerged for Nvidia, a relatively obscure chipmaker at the time. Now, a company that’s 100 times smaller than Nvidia is indicating the same “full conviction” signal. Continued…
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According to 33 analysts, the median price target for Palantir is set at $200 per share, suggesting a potential upside of 79% from the current price of $112.
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In contrast, the median price target for SanDisk is $1,702 per share, based on the views of 28 analysts, which indicates a 19% decline from its current price of $2,109.
These targets imply that investors might want to buy Palantir while considering selling their SanDisk shares. Here’s what to consider before making such moves:
Palantir Technologies: Wall Street suggests a potential 79% upside
Palantir specializes in creating data integration and analytics platforms that assist clients in both public and private sectors with the management and interpretation of intricate information. They’re also venturing into building auxiliary facilities linked to this tech. An AI platform enables data connections and automates workflows through natural language interactions.
The company has garnered recognition from various industry authorities. For instance, the Dresner Advisory Service acknowledged Palantir as a leader in modern AI, data science, and machine learning. Additionally, the International Data Corporation ranked it highly in its report concerning AI-enabled software.
So, what makes Palantir distinct? Unlike many analytics tools that primarily provide reporting, Palantir’s solutions focus on a decision-making structure called ontology. You could think of ontology as a digital reflection of a company’s operations, which is often more user-friendly than traditional spreadsheets, allowing for easier extraction of actionable insights.
Palantir’s financial performance in the first quarter has been remarkable, with revenue jumping 85% to $1.6 billion—a continuation of eleven years of growth. Non-GAAP net income soared 153% to $0.33 per diluted share. “Our financial performance shows immense strength that dwarfs nearly every software company historically,” said CEO Alex Karp.
Even so, despite trading 45% below its peak, Palantir’s current valuation of 52 times sales might still carry risks. Comparatively, CloudStrike trades at only 35 times sales, raising eyebrows among savvy investors. Caution is advisable, and those interested should consider keeping their stake minimal.
SanDisk: Wall Street projects a 19% downside
SanDisk manufactures storage solutions based on NAND flash memory, offering a variety of products including external and embedded flash drives, as well as enterprise solid-state drives for data centers. These NAND-based memory components are pivotal for AI, serving as durable long-term storage for training data.
Recently, prices for NAND memory have surged, tripling in the past year, partly due to high demand fueled by AI infrastructure development, which has greatly benefited SanDisk.
For the March quarter, SanDisk’s revenue saw a remarkable increase of 251% to $5.9 billion, with the data center division particularly thriving. They also reported non-GAAP net income at $23.41 per share, bouncing back from a loss last year.
CEO David Goeckeler shared that SanDisk has secured multi-year agreements covering more than a third of its production capacity for the year ahead, marking a shift from the usual short-term contracts in a sector that is grappling with supply shortages.
Traditionally, memory chip suppliers have competed on price, resulting in cycles of boom and bust. This new trend of long-term contracts could stabilize the price floor, limiting the cyclical nature of the market.
However, despite an optimistic forecast of a 25% annual earnings growth for SanDisk until 2029, some analysts are cautious as they expect profits to sharply decline after 2028, making the current valuation of 68 times earnings look quite steep. As with Palantir, I advise keeping positions small, and perhaps even contemplating selling off larger holdings.
Should you consider buying Palantir Technologies stock now?
If you’re pondering an investment in Palantir Technologies stock, there are a few points worth weighing:
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