Sandisk Stock Is Up More Than 3,700% From Its 52-Week Low. Is the Memory Rally Still Investable, or Is This Stock Priced for Perfection?

SanDisk has surged 3,748% from its 52-week low following its early-2025 spinoff from Western Digital, propelled by surging demand for AI storage infrastructure. The memory maker has locked in $42 billion in multiyear supply contracts with hyperscalers, providing near-term revenue visibility as the AI buildout accelerates.

Despite the explosive rally, the stock trades at 7.6x forward earnings. Analysts project EPS will jump from $66.51 to $208.22 in the next fiscal year, suggesting the valuation remains compressed relative to growth. The Motley Fool views the name as a long-term buy, citing the secular nature of AI infrastructure spending as a tailwind that extends beyond typical memory cycles.

The memory supercycle thesis hinges on sustained hyperscaler capex. SanDisk's contract backlog insulates it from spot-price volatility that has historically plagued memory suppliers, but execution on those contracts and margin trajectory remain key variables.