Key Points
-
SanDisk’s growth trajectory is likely to continue into 2027, supported by robust demand and constrained supply in the NAND flash sector.
-
Favorable growth metrics and a relatively low valuation position the company as an attractive choice for investors aiming to expand their portfolios significantly.
SanDisk (NASDAQ: SNDK) delivered outstanding performance in 2026, with its share price soaring 621%.
Investors who added SanDisk to their holdings have realized substantial gains, and analysts suggest the stock still possesses upside potential. The following analysis examines why the stock remains compelling for growth‑oriented investors despite its recent surge.
The demand for SanDisk’s storage solutions is sustainable
SanDisk’s NAND flash products are in high demand from artificial intelligence (AI) data centers. Gartner forecasts that global NAND flash revenue will increase by roughly 372% in 2026, driven by strong AI‑data‑center spending and limited supply.
SanDisk holds a notable market position, capturing about 11% of the NAND flash market in Q2 2026, according to Counterpoint Research. For the fiscal year ending July 3, 2026, the company’s revenue rose 175% year‑over‑year to $20.25 billion, while non‑GAAP earnings jumped to $70.88 per share from $2.99 the prior year.
Growth was broad‑based across SanDisk’s segments. The data‑center business expanded 5.4× to $5.15 billion, and the edge segment—its largest—nearly tripled to $12.16 billion. Edge revenues stem from flash memory used in smartphones, PCs, gaming consoles, and emerging on‑device AI applications in robotics, automotive, and other fields. The consumer segment also performed well, with revenue climbing 29% to $2.94 billion.
Industry dynamics favor continued price strength. Gartner expects NAND flash prices to rise about 30% in 2027 after a 293% jump in 2026, with favorable pricing projected through the decade. SanDisk’s non‑GAAP operating margin improved to 63% in fiscal 2026 and is forecast to reach 75% by fiscal 2030, indicating further profit acceleration.
Why now may still be the right time to buy
For fiscal 2027, consensus estimates project SanDisk revenue growth of roughly 142% to $49 billion and earnings per share that could triple. The stock currently trades at about 25× trailing earnings and 8× forward earnings, levels that many growth investors consider reasonable.
These factors suggest that SanDisk’s strong growth story is far from over. Even after the multi‑bagger performance in 2026, the company’s expanding market share, solid segment dynamics, and attractive valuation still make it a candidate for investors looking to build sizable positions.
Image source: The Motley Fool.
