SanDisk (NASDAQ: SNDK) has been a standout performer in the S&P 500 this year, surging around 800% in 2026. This easily places it ahead of its closest competitor, Micron Technology, which has seen a 300% increase during the same period. It’s quite impressive to witness such dramatic growth in just a half-year.
That said, it’s natural to ponder whether SanDisk still has significant growth potential ahead of it or if it’s reached its peak for 2026.
Reflecting on past trends, remember when a “double down” signal appeared for Nvidia back in 2009? It’s intriguing to see a similar “full conviction” signal flashing for a relatively unknown chipmaker, which is now 100 times smaller than Nvidia.
Surprisingly, I think there’s still room for SanDisk stock to rise in the latter half of 2026. The ongoing supply shortages within the industry could lead to favorable outcomes. While it’s unlikely to replicate the previous 800% return, investors might still see significant returns.
Memory Chip Shortage Intensifies
SanDisk specializes in NAND memory manufacturing, crucial for long-term data storage. Much of this type of memory is utilized in solid-state drives (SSDs) for data centers. However, SanDisk and similar companies struggle to keep pace with the immense demand that data centers generate, leading to soaring memory chip prices—a clear advantage for SanDisk.
Many companies are racing to boost production, yet it appears to be an uphill battle. For instance, Micron has indicated that “challenging conditions” may persist beyond 2027, suggesting a sustained demand for SanDisk’s products.
Additionally, the data center construction boom is only accelerating. According to some estimates, global data center expenditures could soar to between $3 trillion to $4 trillion annually by 2030. This creates a promising landscape for long-term growth for SanDisk, making its stock appealing.
Wall Street is optimistic about SanDisk’s future, projecting an impressive growth of 336% in the fourth quarter (ending June) and 122% in 2027. Provided the stock price remains reasonable, there’s potential for continued upward movement. Fortunately, it seems to be trending positively at this point.
With the stock sitting at around 11 times its fiscal 2027 earnings, it’s not overvalued. In fact, there’s a real chance it could double and still be considered a good investment. Because of this, I believe SanDisk can continue to push higher than its current levels.
Should You Buy SanDisk Stock Now?
Before making any investment in SanDisk, it’s worth considering a few points:
Interestingly, the Motley Fool stock advisors have put together a list of the 10 best stocks to consider, which, notably, does not include SanDisk. These stocks are tailored for long-term growth and show great promise for significant returns in the coming years.
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