Sandisk (NASDAQ: SNDK)one of the largest flash memory manufacturers in the world, was once considered a circulating stock in the stock market. But from its beginning Western Digital (NASDAQ: WDC) last February, its stock rose more than 5,200%.
In 2026 alone, Sandisk’s stock has grown more than 720%. Should investors chase that rally, or should they wait for the stock to cool? Let’s review its growth rates and ratings to decide.
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Why is Sandisk’s stock going up?
When Western Digital spun off Sandisk, it was still a slow-growing maker of NAND flash memory chips, which are used in solid-state drives (SSDs), USB drives, and SD cards. However, the explosive growth of the artificial intelligence (AI) market forced data centers to upgrade their servers with faster SSDs.
That buying frenzy caused a worldwide NAND memory chip shortage and drove up Sandisk’s chip prices, boosting revenue and margins. Sandisk also capitalized on the AI boom by introducing the world’s first 256TB enterprise SSD for AI data pools. Those denser drives have enabled hyperscalers to combine dozens of hardware server racks into a single unit.
Besides Western Digital, which was struggling to sell its older hard disk drives (HDDs), Sandisk became a “pure play” in the NAND market. In fiscal year 2025 (ended last July), Sandisk’s revenue grew 10%, its adjusted gross margin expanded from 14.8% to 30.3%, and it returned to profitability on a non-GAAP (generally accepted accounting principles) basis.
But in fiscal year 2026, analysts expect Sandisk’s revenue and non-GAAP EPS to rise 167% and 2,089%, respectively, as those AI storms accelerate. For fiscal 2027, they expect the company’s revenue and non-GAAP EPS to increase 122% and 180%, respectively.
That growth should be fueled by its increased sales of 256TB SSDs in hyperscalers, development of denser chips, and multi-year cloud contracts that will generate predictable revenue and protect it from future memory market risks.
But should you buy Sandisk stock today?
At $1,920 per share, Sandisk trades at 10 times and 11 times next year’s non-GAAP and GAAP EPS estimates, respectively. So even though Sandisk’s stock has risen sharply since its spinoff from Western Digital, it’s still valued as a slow-growth maker of legacy memory chips rather than a high-growth AI chipmaker. If that valuation happens, Sandisk’s stock could double or triple from its current levels — so it still looks like a valuable investment.
