2 months ago
33
David Jagielski, CPA, The Motley Fool
Wed, April 15, 2026 astatine 9:49 AM CDT 3 min read
Sandisk (NASDAQ: SNDK) banal has been 1 of the hottest buys implicit the past year, rising by implicit 2,500%. It's an unthinkable show that has resulted successful its valuation swelling to a marketplace headdress of implicit $130 billion. The insatiable request for its representation and retention products has been done the extortion owed to artificial intelligence, and investors person been loading up connected the banal successful anticipation of perchance stronger results ahead.
Recently, this red-hot Nasdaq stock received much large news: it volition beryllium joining the Nasdaq-100 index, which is simply a postulation of the apical non-financial stocks connected the exchange. Could it pb to adjacent much gains for Sandisk investors?
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The Nasdaq-100 is an exclusive club, and Sandisk joining those ranks whitethorn assistance its stock terms rally further. That's due to the fact that it means the banal volition beryllium included successful much funds and portfolios. While retail investors whitethorn person been driving up its stock terms implicit the past year, now, a broader premix of investors who simply way the Nasdaq-100 done exchange-traded funds volition person vulnerability to it. Sandisk volition officially articulation the scale connected April 20.
It could precise good get a boost from the summation to the index, but investors shouldn't presume that it's a definite thing. There has been immoderate hesitance successful the tech assemblage this year. The Invesco QQQ Trust, which tracks the Nasdaq-100, is lone up astir 2% frankincense far, and that's lone owed to a caller rally; otherwise, its returns would beryllium worse. And the inclusion of Sandisk, which immoderate investors whitethorn judge is overdue for a pullback, whitethorn springiness risk-averse investors further crushed to trim vulnerability to the Nasdaq-100.
Sandisk is benefiting from a shortage successful the request for flash representation storage, which is driving up prices successful the process. That's wherefore adjacent though it has rallied truthful overmuch implicit the past year, it's trading astatine a humble guardant price-to-earnings aggregate of 19, based connected expert expectations. There's inactive overmuch much maturation expected from the concern successful the adjacent future.
Between the ongoing request for representation and present Sandisk besides being portion of the Nasdaq-100, determination are aggregate reasons to stay bullish connected the maturation stock. It tin inactive beryllium a terrific buy, but investors should besides see the risk, due to the fact that erstwhile determination isn't a shortage and prices travel down, the banal could beryllium owed for a large pullback.
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