Sandisk Stock Is Up 720% in 2026. Is the Rally Still Worth Chasing?

Sandisk has rallied 720% in 2026 and over 5,200% since its February 2025 spin-off from Western Digital, fueled by its pivot to AI infrastructure. The company shifted from legacy memory chips to enterprise-grade storage solutions for data centers, anchored by its 256TB enterprise SSDs designed for AI workloads.

The valuation story remains compelling despite the vertical move. Analysts project 167% revenue growth and 2,089% EPS growth for fiscal 2026, yet SNDK trades at only 10-11x forward earnings. That multiple reflects legacy memory valuations, not the premium typically assigned to high-growth AI chipmakers—a disconnect that could drive further upside if the market rerates the stock.

The company's enterprise SSD capacity—specifically the 256TB drives—positions it directly in the AI data center upgrade cycle, where demand for high-capacity, high-performance storage continues to accelerate. The spin-off structure gave Sandisk operational independence to pursue these contracts without Western Digital's legacy business weighing on investor perception.