Is It Too Late to Buy Sandisk After Its 568% Run?

SNDK has rallied 568% in 2026, marking it the top-performing stock in the Nasdaq-100, fueled by AI infrastructure spending on memory solutions. The company has locked in $93.9 billion in long-term supply contracts, providing unprecedented revenue visibility as hyperscalers race to build out data center capacity.

Despite the run, SNDK trades at a forward price-to-earnings ratio of just 7, a sharp discount to semiconductor peers that typically command multiples in the teens or higher. The valuation gap persists even as the company executes aggressive share buybacks and benefits from its strategic joint venture with Kioxia, which expands manufacturing capacity for high-bandwidth memory critical to AI workloads.

The combination of locked-in contracts, structural demand from AI infrastructure buildouts, and a compressed valuation suggests room for further upside if execution continues. The forward P/E of 7 implies the market hasn't fully priced in the multi-year demand cycle or the margin potential from large-scale supply agreements.