Sandisk Stock Was the Biggest Winner in the First Half of 2026. What's Next for the Second Half?

Sandisk (NASDAQ: SNDK) is the best-performing S&P 500 stock truthful acold successful 2026, and it isn't peculiarly close. It's up astir 800% truthful acold successful 2026, easy outperforming second-place Micron Technology, which is up "only" astir 300%. That's a simply unthinkable show for conscionable six months.

Still, aft a tally similar that, it's tenable to wonderment if determination is further upside up oregon if Sandisk has delivered everything that it's going to present successful 2026.

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Although it whitethorn look surprising, I deliberation determination is plentifulness of upside near successful Sandisk's banal successful the 2nd fractional of 2026, particularly with the large shortages going connected successful its industry. While it won't instrumentality different 800% from here, it could inactive reward investors rather well.

The representation spot shortage is getting worse

Sandisk makes NAND memory, which is chiefly utilized for semipermanent information storage. Most of the NAND representation you'll brushwood successful a information halfway comes successful the signifier of solid-state drives (SSDs), which are utilized for semipermanent accusation storage. Sandisk and its peers aren't utilized to the monolithic request being generated by information centers, and this cohort doesn't person the accumulation capableness indispensable to conscionable demand. As a result, prices for representation chips are soaring, and Sandisk is benefiting from it.

Everyone successful the manufacture is scrambling to basal up much capacity, but it whitethorn beryllium a losing battle. Micron, different representation spot maker, believes that "tight conditions" volition persist beyond 2027, which bodes good for the request curve Sandisk is seeing.

Compounding this is simply a rapidly expanding information halfway build-out plan; Nvidia believes planetary information halfway spending could scope $3 trillion to $4 trillion annually by 2030. That creates an situation wherever Sandisk and its peers tin win for a agelong time, making the banal an intriguing buy.

Wall Street analysts task large maturation up for Sandisk, with fiscal fourth-quarter maturation of 336% (ended successful June) and 122% maturation for fiscal 2027. As agelong arsenic the banal is reasonably priced, this means Sandisk banal could easy spell higher from here, and fortunately for investors, it is. I'm utilizing fiscal 2027 estimates to worth Sandisk's stock, since it conscionable started:

At 11 times fiscal 2027 earnings, Sandisk banal isn't precise expensive, and could easy treble from present and inactive beryllium reasonably valued. As a result, I deliberation Sandisk could caput higher from today's levels, and makes for a large bargain now.