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Sandisk Rockets 4000% on AI Memory Boom: Buy, Hold, or Take Profits?
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Key Takeaways
Sandisk gained more than 4,000% in a year amid booming AI data center demand.
SNDK posted fiscal Q3 revenues of $5.95B, up 97% sequentially on strong pricing.
SNDK expects fiscal Q4 revenues of up to $8.25B and EPS between $30 and $33.
After spinning off from Western Digital in February 2025, Sandisk Corporation (SNDK - Free Report) has been on a remarkable upward journey, lifted by the accelerating demand tied to the artificial intelligence (AI) infrastructure boom. The NAND flash memory company has delivered gains of more than 4,000% over the past year, easily outpacing other major industry players, including the much-talked-about Micron Technology (MU - Free Report) .
With a market capitalization of around $235 billion, Sandisk’s shares jumped from a 52-week low near $36 to roughly $1551 as of today, including a gain of over 500% in 2026 alone. But the rapid rise has sparked debate among investors. Given the highly cyclical nature of the memory business, some are concerned about whether the rally has already run its course. However, the company’s improving fundamentals suggest that there could still be meaningful upside ahead, making Sandisk a compelling investment opportunity. Let’s see in detail –
AI Demand and Strategic Deals Fuel Sandisk’s Growth Momentum
In recent times, Sandisk has benefited from the rising AI data center demand for memory products amid tight industry supply. This tailwind is expected to continue, since the demand-supply imbalance is likely to persist for some time.
For the fiscal third quarter, Sandisk’s revenues came in at $5.95 billion, up 97% sequentially and surpassing the company’s guidance range, according to investor.sandisk.com. Strong revenue performance was mostly due to a shift toward higher-value customers, primarily in the data center segment, which surged 233% and strong pricing power across its products.
The revenue growth is expected to carry into the next quarter as well. For the fiscal fourth quarter, Sandisk expects revenues to come between $7.75 billion and $8.25 billion. Non-GAAP earnings per share (EPS) are expected to come in between $30 and $33, more than the fiscal third quarter’s $23.41, reflecting continued sequential growth.
The company is also making long-term, high-value partnerships through its New Business Model (“NBM”) agreements. The company concluded three NBM agreements in the fiscal third quarter and added two more in the fiscal fourth quarter. These multi-year contracts have improved revenue visibility and strengthened customer stability.
Buy Sandisk Stock Hand Over Fist
Strong AI data center demand and constrained memory supply are benefiting Sandisk. Strong sequential revenue growth, improving profitability and long-term customer contracts could act as catalysts for continued upside in the stock price.
From a technical perspective, Sandisk’s shares are currently trading well above the long-term 200-day moving average (DMA) and the short-term 50 DMA, signaling an uptrend.
Technical Indicator & Overlays - Sandisk
Image Source: Zacks Investment Research
All these make Sandisk a buy for the long run. Moreover, buying Sandisk’s shares is comparatively more affordable than its peers, giving investors a potential edge. Per the price/earnings ratio, SNDK trades at 24.53 forward earnings. In comparison, the Computer- Storage Devices industry’s forward earnings multiple is 29.44.
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Image: Bigstock
Sandisk Rockets 4000% on AI Memory Boom: Buy, Hold, or Take Profits?
Key Takeaways
After spinning off from Western Digital in February 2025, Sandisk Corporation (SNDK - Free Report) has been on a remarkable upward journey, lifted by the accelerating demand tied to the artificial intelligence (AI) infrastructure boom. The NAND flash memory company has delivered gains of more than 4,000% over the past year, easily outpacing other major industry players, including the much-talked-about Micron Technology (MU - Free Report) .
With a market capitalization of around $235 billion, Sandisk’s shares jumped from a 52-week low near $36 to roughly $1551 as of today, including a gain of over 500% in 2026 alone. But the rapid rise has sparked debate among investors. Given the highly cyclical nature of the memory business, some are concerned about whether the rally has already run its course. However, the company’s improving fundamentals suggest that there could still be meaningful upside ahead, making Sandisk a compelling investment opportunity. Let’s see in detail –
AI Demand and Strategic Deals Fuel Sandisk’s Growth Momentum
In recent times, Sandisk has benefited from the rising AI data center demand for memory products amid tight industry supply. This tailwind is expected to continue, since the demand-supply imbalance is likely to persist for some time.
For the fiscal third quarter, Sandisk’s revenues came in at $5.95 billion, up 97% sequentially and surpassing the company’s guidance range, according to investor.sandisk.com. Strong revenue performance was mostly due to a shift toward higher-value customers, primarily in the data center segment, which surged 233% and strong pricing power across its products.
The revenue growth is expected to carry into the next quarter as well. For the fiscal fourth quarter, Sandisk expects revenues to come between $7.75 billion and $8.25 billion. Non-GAAP earnings per share (EPS) are expected to come in between $30 and $33, more than the fiscal third quarter’s $23.41, reflecting continued sequential growth.
The company is also making long-term, high-value partnerships through its New Business Model (“NBM”) agreements. The company concluded three NBM agreements in the fiscal third quarter and added two more in the fiscal fourth quarter. These multi-year contracts have improved revenue visibility and strengthened customer stability.
Buy Sandisk Stock Hand Over Fist
Strong AI data center demand and constrained memory supply are benefiting Sandisk. Strong sequential revenue growth, improving profitability and long-term customer contracts could act as catalysts for continued upside in the stock price.
From a technical perspective, Sandisk’s shares are currently trading well above the long-term 200-day moving average (DMA) and the short-term 50 DMA, signaling an uptrend.
Technical Indicator & Overlays - Sandisk
Image Source: Zacks Investment Research
All these make Sandisk a buy for the long run. Moreover, buying Sandisk’s shares is comparatively more affordable than its peers, giving investors a potential edge. Per the price/earnings ratio, SNDK trades at 24.53 forward earnings. In comparison, the Computer- Storage Devices industry’s forward earnings multiple is 29.44.
Image Source: Zacks Investment Research
Sandisk currently has a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.