In solely 11 buying and selling days up to now this yr, Sandisk Company SNDK inventory is already up a blazing +70% to over $400 a share, making the clear argument for the most well liked tech inventory to pursue in 2026.
To that time, Sandisk’s explosive rally isn’t popping out of nowhere however as a substitute is the results of a shortage within the reminiscence chip market, particularly for non-volatile flash reminiscence known as NAND.
Being a significant NAND producer, Sandisk is straight benefiting from this shortage as AI infrastructure requires monumental quantities of high-performance flash storage and is pushing NAND costs increased with corporations racing to construct out AI capability.
Sandisk Efficiency Overview
Notably, Sandisk was spun off from Western Digital WDC to separate its enterprise into two targeted, impartial corporations — one for hard-disk drives (HDDs) and one for flash reminiscence. The flash enterprise grew to become Sandisk Company after a strategic assessment from Western Digital concluded that its HDD and flash/NAND divisions had totally different markets, progress profiles, and capital wants.
AI infrastructure demand for enterprise HDD has been off the charts as effectively, however there was a broader industry-wide shortage for NAND, which has catapulted Sandisk inventory over +700% since changing into its personal publicly traded firm in February 2025, with Western Digital shares up greater than +300% throughout this era.
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How NAND Works
Aforementioned, NAND is a sort of non-volatile flash reminiscence, which means it retains information even when the facility is off, and is taken into account the inspiration of most fashionable storage units.
As a storage know-how, NAND flash is utilized in SSDs, USB drives, SD playing cards, smartphones, and tablets. It’s referred to as “NAND” as a result of its inner construction is predicated on the NOT-AND logic gate, which determines how information is saved in every reminiscence cell.
NAND makes use of floating-gate transistors to entice electrons and symbolize information bits, and since it doesn’t want energy to retain these electrons, it’s thought of non-volatile. Moreover, NAND is optimized for top density, quick speeds, sturdiness, and low energy consumption, which is why it dominates shopper storage.
Concerning the present AI and data-center increase, solid-state drives (SSDs) constructed on NAND are important for feeding information to graphic processing items (GPUs) and different AI chips, accelerators, or servers.
Sandisk’s Sturdy Monetary Figures
Sandisk will not be a typical spinoff firm, which tends to create worth over time, however not instantly. Whereas spinoffs can outperform, it is from assured, with Sandisk’s strong high and backside strains being the exception, not the rule.
Primarily based on Zacks estimates, Sandisk’s gross sales are anticipated to soar 42% in fiscal 2026 to $10.45 billion versus $7.36 billion final yr. Plus, FY27 gross sales are projected to climb one other 26% to $13.15 billion.
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Extra spectacular, annual earnings are anticipated to skyrocket 350% this yr to $13.46 per share from EPS of $2.99 in 2025. Higher nonetheless, FY27 EPS is forecasted to soar one other 93% to a whopping $25.94.
Propelling the relentless rally in Sandisk inventory is that FY26 and FY27 EPS revisions are up over 10% within the final 60 days and have now risen effectively over 100% within the final three months from estimates of $6.31 and $10.39, respectively.
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SNDK is Nonetheless Pretty Valued
Contemplating Sandisk has a stronghold on a pivotal know-how, SNDK continues to be buying and selling at an affordable 30X ahead earnings a number of regardless of its unprecedented rally within the final yr. This isn’t a noticeable stretch to the benchmark S&P 500 and is roughly on par with Western Digital and their Zacks Laptop-Storage Units Business common of 29X ahead earnings.
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Backside Line
Sandisk is definitely making the argument for the most well liked tech inventory to pursue in 2026, with SNDK at present boasting a Zacks Rank #1 (Robust Purchase) based mostly on the blazing development of rising EPS revisions. Though a pointy pullback would current a extra very best entry level, the accelerating demand for NAND suggests extra upside, particularly with Sandisk inventory nonetheless being fairly valued by way of P/E.
#1 Semiconductor Inventory to Purchase (Not NVDA)
The unimaginable demand for information is fueling the market’s subsequent digital gold rush. As information facilities proceed to be constructed and consistently upgraded, the businesses that present the {hardware} for these behemoths will grow to be the NVIDIAs of tomorrow.
One under-the-radar chipmaker is uniquely positioned to reap the benefits of the subsequent progress stage of this market. It focuses on semiconductor merchandise that titans like NVIDIA do not construct. It is simply starting to enter the highlight, which is strictly the place you need to be.
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This text initially printed on Zacks Funding Analysis (zacks.com).
The views and opinions expressed herein are the views and opinions of the creator and don’t essentially replicate these of Nasdaq, Inc.
