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Jennifer Saibil, The Motley Fool
Fri, May 15, 2026 astatine 11:06 AM CDT 4 min read
Sandisk (NASDAQ: SNDK) has been the astonishment victor successful artificial quality (AI) improvement this year. The company, which has been astir for decades arsenic a representation and retention company, was spun disconnected from Western Digital successful February 2025 astatine a humble archetypal nationalist offering (IPO) terms of $38.50. That stock terms has since skyrocketed 3,640% to $1,440.
That's a batch of stock terms appreciation successful a comparatively abbreviated time. Is it astatine the extremity of its historical run? Or is determination inactive clip to bargain this growth stock?
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Sandisk is filling a spread successful AI
What has turned Sandisk banal into a prima is its NAND representation products, which are important for galore types of technology, including information centers and smartphones. NAND is simply a benignant of representation that's non-volatile, which means it stores information adjacent successful an "off" state, and it's high-density, which is much cost-effective. This benignant of representation is important for grooming AI models, allowing them to store monolithic amounts of information and usage it for grooming purposes.
As hyperscalers proceed to expand, representation is becoming much scarce and truthful much expensive, adjacent astatine the cost-effective level. Not lone are Sandisk's products successful soaring demand, but they're besides expanding successful price, and Sandisk has been reporting outstanding operating results. In the 2026 fiscal 3rd 4th (ended April 3), gross accrued 97% sequentially and 251% twelvemonth implicit year, and adjusted net per stock (EPS) were $23.41, up from $5.15 the erstwhile quarter.
CEO David Goeckeler noted that the institution is benefiting from a displacement to information centers, which helium calls "higher-value customers," from its erstwhile absorption connected different kinds of technology. Data halfway gross accrued 233% successful the quarter. Another improvement is that it's moving to a concern exemplary based connected multiyear agreements. That's beneficial for some sides, since customers person committed retention and Sandisk has committed revenue. It signed 3 of what it calls "new-business model" agreements successful the 3rd 4th and different 2 already successful the 4th quarter.
The ongoing accidental for Sandisk
At slightest successful the adjacent term, it inactive looks similar Sandisk has an unthinkable opportunity. The manufacture is speeding up, not slowing down, and absorption has figured retired a much unafraid and lucrative concern exemplary that locks successful multiyear gross commitments.
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