6 hours ago
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Keithen Drury, The Motley Fool
Sun, June 7, 2026 astatine 12:20 PM CDT 3 min read
If you invested successful Sandisk (NASDAQ: SNDK) banal astatine the commencement of 2026, you're a blessed camper. It has risen astir 700% since the commencement of the year, delivering gains that usually instrumentality decades to achieve. If you've missed retired (like me), past you're evidently a spot disappointed, but these stocks aren't casual to pinpoint; otherwise, everyone would beryllium enjoying monolithic gains.
The question is, is determination capable worth near successful Sandisk's banal to warrant investing successful it close now? Let's instrumentality a look, arsenic immoderate of the tailwinds that drove it higher are inactive intensifying.
Missed Nvidia successful 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" awesome flashed for a little-known chipmaker called Nvidia. For the archetypal clip successful years, that aforesaid "Total Conviction" awesome is flashing for a institution 1/100th the size of Nvidia. Continue »
Sandisk is thriving from the representation spot shortage
The artificial quality (AI) build-out is stretching galore industries thin. The AI hyperscalers are looking to walk hundreds of billions of dollars successful information halfway superior expenditures this year, and that could ramp up to $1 trillion successful 2027, according to Nvidia. Countless types of hardware spell into a caller information halfway build, ranging from energy procreation to cooling infrastructure to computing chips. There's besides a monolithic request for storage, which is wherever Sandisk is thriving.
Data centers don't usage slower hard drives to store information. They typically deploy solid-state drives (SSDs), which Sandisk manufactures. SSDs are really powered by a ton of NAND representation chips, which are affected by the representation spot shortage. There is conscionable truthful overmuch request coming from the AI realm that these businesses don't person the proviso oregon accumulation capableness to support up with demand, which is causing prices to soar. Sandisk benefits from this proviso crunch, arsenic it tin present merchantability its products astatine a higher cost, boosting gross and profits astatine the aforesaid time.
It has been wide reported that Sandisk has sold retired of accumulation capableness successful 2026, and 2027 is being bought up arsenic well. This makes for a large multiyear maturation scenery for Sandisk, which could pb to soaring profits. By the extremity of fiscal twelvemonth 2027, which ends successful June 2027, Wall Street estimates that Sandisk's net per stock (EPS) volition scope $177.84. If the banal trades for 20 times net astatine that point, its terms volition beryllium northbound of $3,500 per share. That's astir a treble from today's price, truthful determination inactive could beryllium plentifulness of upside remaining successful Sandisk's banal successful a abbreviated clip frame.
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