Sandisk (NASDAQ: SNDK) has been the surprise winner in artificial intelligence (AI) development this year. The company, which has been around for decades as a memory and storage company, was spun off from Western Digital in February 2025 at a humble initial public offering (IPO) price of $38.50. That share price has since skyrocketed 3,640% to $1,440.
That’s a lot of share price appreciation in a relatively short time. Is it at the end of its historic run? Or is there still time to buy this growth stock?
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Sandisk is filling a gap in AI
What has turned Sandisk stock into a star is its NAND memory products, which are important for many types of technology, including data centers and smartphones. NAND is a type of memory that’s non-volatile, which means it stores data even in an “off” state, and it’s high-density, which is more cost-effective. This kind of memory is crucial for training AI models, allowing them to store massive amounts of data and use it for training purposes.
As hyperscalers continue to expand, memory is becoming more scarce and therefore more expensive, even at the cost-effective level. Not only are Sandisk’s products in soaring demand, but they’re also increasing in price, and Sandisk has been reporting outstanding operating results. In the 2026 fiscal third quarter (ended April 3), revenue increased 97% sequentially and 251% year over year, and adjusted earnings per share (EPS) were $23.41, up from $5.15 the previous quarter.
CEO David Goeckeler noted that the company is benefiting from a shift to data centers, which he calls “higher-value customers,” from its previous focus on other kinds of technology. Data center revenue increased 233% in the quarter. Another development is that it’s moving to a business model based on multiyear agreements. That’s beneficial for both sides, since customers have committed storage and Sandisk has committed revenue. It signed three of what it calls “new-business model” agreements in the third quarter and another two already in the fourth quarter.
The ongoing opportunity for Sandisk
At least in the near term, it still looks like Sandisk has an incredible opportunity. The industry is speeding up, not slowing down, and management has figured out a more secure and lucrative business model that locks in multiyear revenue commitments.
