Why this previously overlooked tech stock has already surged by 100% in 2026

Sandisk Surges Amid AI-Driven Memory Chip Demand

While some technology stocks are losing momentum, Sandisk is defying the trend. Founded in 1988, this memory chip company has seen its shares soar by over 100% in 2026 alone, with a staggering 1,200% increase over the past year.

The rapid expansion of AI infrastructure in the United States has significantly boosted demand for memory chips, benefiting both Sandisk and its competitor Micron. As hyperscale data centers ramp up their AI capabilities, the need for advanced memory solutions to store and process massive datasets has grown sharply.

Sandisk specializes in data storage products utilizing NAND flash technology.

Industry experts point out that memory components have become one of the most constrained elements in the AI supply chain.

During a December investment conference, Sandisk CEO David Goeckeler remarked, "The market is evolving rapidly and remains highly dynamic. We're seeing that our customers are prioritizing reliable supply over cost."

Analysts anticipate exceptional financial results from Sandisk in 2026, supporting its elevated stock valuation.

Projections suggest Sandisk will post earnings of $13.77 per share for fiscal 2026, a significant jump from $2.99 the previous year. Looking ahead, estimates for 2027 rise further to $25.85 per share, indicating continued robust growth.

Over the past three months, forecasts for Sandisk’s earnings this year and next have more than doubled, based on available data.

JP Morgan analyst Harlan Sur noted, "The recent surge in demand for enterprise SSDs, expected to grow at a 35% annual rate and reach $45 billion by 2027, gives Sandisk an opportunity to expand its market share in NAND to around 15% (by bit output)."

Sur also highlighted, "With data center revenues projected to nearly triple in fiscal 2025 and ongoing collaborations with major hyperscalers, Sandisk is well-positioned to benefit as customers diversify their eSSD suppliers. This demand, combined with disciplined industry investment, creates a favorable pricing environment for the company."

Despite the optimism surrounding Sandisk and, to a lesser extent, Micron, this enthusiasm hasn't spread across the entire tech sector as the new year unfolds.

Julian Emanuel, a strategist at Evercore, observed that tech-focused investors are currently as cautious as they have been since the AI-driven rally began with ChatGPT in late 2022.

Tech Sector Valuations and Sandisk’s Outlook

Evercore ISI data reveals that the information technology sector is now trading at its smallest valuation premium to the S&P 500 since the pandemic. The "Magnificent Seven" group of tech giants is valued in line with its post-pandemic average, while the rest of the S&P 500 hovers near record-high valuations.

This elite group has seen its collective value fall by about 5% so far this year.

Goldman Sachs strategists report that the price-to-earnings growth ratio for large-cap tech stocks has dropped to 1.4 times, matching the lows seen in 2022.

For now, however, Sandisk appears insulated from the broader tech sector’s subdued sentiment.

Jefferies analyst Blayne Curtis commented, "While history suggests the memory market’s boom won’t last forever, we expect Sandisk’s earnings to keep climbing in the near term."