Sandisk Is the Best-Performing S&P 500 Stock During the First Half of 2026. Here's What Stock I Think Will Dominate the Second Half (Hint: It's Not SpaceX)

SanDisk has posted an approximately 800% gain in the first half of 2026, claiming the top spot among S&P 500 performers. The rally stems from a severe memory chip shortage fueled by AI data center expansion.

Analyst Keithen Drury now projects Nvidia will dominate second-half returns, with potential to double from current levels as investors price in AI spending momentum beyond 2026. Nvidia trades at 21.5x forward earnings—well below the 40x or higher multiples the stock has historically commanded by year-end.

SanDisk's shortage-driven surge highlights the infrastructure bottlenecks created by rapid AI deployment. Memory chips remain a critical constraint as hyperscalers race to build capacity. Nvidia stands to benefit as the primary supplier of GPUs powering these same data centers, positioning the chipmaker to capture both near-term demand and long-cycle capital expenditure commitments.

The valuation gap presents the core thesis: if Nvidia returns to its typical year-end multiple, the stock could deliver 86% upside from current levels even without earnings growth acceleration.