3 weeks ago
9
Keithen Drury, The Motley Fool
Sun, July 19, 2026 astatine 2:04 PM CDT 3 min read
If you had the foresight to bargain Sandisk (NASDAQ: SNDK) banal astatine the commencement of 2026, you're astir apt a blessed investor. It's up a jaw-dropping 580% astatine the clip of this writing, easy outperforming astir each different banal successful the market. However, the 2nd fractional of 2026 hasn't been truthful pleasant. The banal is down by much than 30% from the precocious it touched successful precocious June.
But I deliberation this could beryllium a large introduction point. Sandisk remains a apical enactment successful this AI-powered market, and I deliberation it could marque investors a large instrumentality passim the remainder of 2026 for 1 elemental reason.
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The representation spot crunch is acold from implicit
Sandisk makes NAND memory, which goes into information retention devices similar solid-state drives (SSDs). SSDs are utilized heavy successful AI information centers, arsenic moving AI applications decently requires accessing and storing monolithic amounts of accusation rapidly. There is presently acold much request for each types of information halfway representation than producers are capable to supply, and that shortage has caused representation prices to soar implicit the past year. This is besides wherefore prices connected idiosyncratic computers person increased, and it's rumored smartphone makers whitethorn hike their prices to bespeak their higher representation costs, too.
The representation spot marketplace has historically been cyclical, with request rising and falling. However, with the AI infrastructure build-out expected to past beyond 2030, the existent up signifier of this representation spot rhythm whitethorn beryllium acold much elongated than investors are utilized to, making Sandisk and its peers amended concern options than they historically person been. One of Sandisk's peers, Micron Technology (NASDAQ: MU), told investors that it expects the representation spot marketplace to stay supply-constrained beyond 2027, which points to astatine slightest different twelvemonth and a fractional of beardown results for Sandisk.
That's the outlook investors request to support successful caput erstwhile deciding if Sandisk banal is simply a bully bargain here, arsenic its valuation looks incredibly attractive.
Sandisk's fiscal twelvemonth ends successful June, truthful the steep drop-off successful the illustration supra represents the constituent wherever the metric's calculation shifted to fiscal 2027's projections. If Sandisk tin emergence to astir 30 times guardant net to decorativeness retired fiscal 2027, past the banal could much than triple from today's level. That large upside imaginable makes Sandisk look similar a large bargain adjacent aft its 580% emergence truthful acold successful 2026.
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