The Sandisk Rally Isn't Over Yet

Sandisk is astatine the halfway of AI

When astir radical deliberation of AI, they instantly deliberation of Nvidia. However, investors tin marque much wealth by focusing connected smaller components of AI, specified arsenic representation chips. Its NAND flash representation exertion is captious for AI chips that process important amounts of data. Without bully representation products, AI chips would acquisition important show drops, and immoderate workloads would halt functioning.

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Sandisk is simply a captious portion of the AI bottleneck, and much investors person been noticing. That's wherefore the banal is up by much than 4,850% implicit the past year. Its fundamentals backmost the move, with nett net margins supra 60% and gross astir doubling sequentially successful its fiscal 2026 Q3.

Sandisk CEO David Goeckeler called the 4th a "fundamental inflection point" for the institution portion touting awesome guidance for its fiscal 2026 Q4. The $8 cardinal midpoint for Q4 FY26 gross represents 34.4% sequential maturation from the company's blockbuster fiscal 2026 Q3 results.

Sandisk inactive trades astatine a bully valuation

It's hard to find a maturation banal that is up by much than 4,850% implicit the past twelvemonth portion simultaneously having a bully valuation, but Sandisk fits the description. The institution has a 67.7 P/E ratio compared to the State Street Technology Select Sector SPDR ETF's 36.8 P/E ratio.

However, astir nary of the companies successful that tech benchmark are increasing arsenic rapidly arsenic Sandisk. The NAND flash representation supplier has a guardant P/E ratio of 30.6. This metric reflects however Sandisk's valuation volition go much charismatic implicit clip arsenic it continues to present exceptional gross and nett income maturation rates.

Some of Sandisk's competitors person warned that ongoing representation spot shortages volition past passim 2027 and beyond. Sandisk is already sold retired of representation products done 2026 and is seeing heightened request for 2027.

Sandisk volition proceed to person a bully valuation arsenic agelong arsenic the AI build-out continues. Memory products volition proceed to go much costly owed to the cleanable tempest of proviso crunches and rising demand. Those monolithic tailwinds explicate wherefore Sandisk continues to deed caller highs contempt an otherworldly rally implicit the past year.