Why Sandisk's 371% Rally Over Six Months Could Signal Bigger Opportunities Ahead

Over the past six months from today, Sandisk Corporation SNDK has delivered a staggering 371.2% return, leaving behind major industry players like Western Digital WDC (up 195.5%), Seagate STX (up 122.9%), and Micron Technology MU (up 100.3%) in the dust. The computer storage sector itself only managed 20.6% gains, making Sandisk’s performance an outlier worth understanding.

The AI Infrastructure Tailwind Is Just Getting Started

Sandisk’s explosive growth isn’t accidental—it’s fueled by two converging mega-trends that are reshaping the tech landscape.

The first is AI’s insatiable appetite for storage. Following its spin-off from Western Digital in February, Sandisk has positioned itself at the epicenter of this wave with its BiCS8 NAND technology. In Q1 FY2026, BiCS8 represented just 15% of total bits shipped, but the company projects it will dominate the majority of production by year-end. This next-generation flash technology enables the high-capacity, power-efficient SSDs that AI data centers desperately need.

Consider the scale: global investments in data center and AI infrastructure are expected to surpass $1 trillion by 2030. Sandisk’s data center division already showed this potential with $269 million in Q1 FY2026 revenues—a remarkable 26% sequential jump. Major hyperscalers, neocloud operators, and OEM customers are increasingly adopting Sandisk’s solutions, particularly the company’s Stargate SSD product line designed specifically for storage-intensive workloads.

PC Upgrades and Consumer Demand Creating Secondary Growth Engine

Beyond the data center boom, a more granular trend is reshaping consumer devices. Windows 11 adoption is driving a PC refresh cycle that’s accelerating NAND demand across edge devices. Sandisk’s edge business jumped 26% sequentially and 30% year-over-year in Q1 FY2026, reaching $1.39 billion in revenues.

This momentum extends beyond traditional computers. Smartphones are getting faster storage too—capacity per device is expected to grow in the high single digits through 2026. Gaming consoles represent another growth vector; Sandisk’s partnership with Nintendo generated 900,000 units of co-branded Switch 2 microSD Express Cards in Q1 alone. The company is also expanding with ROG Xbox Ally storage solutions, driving consumer revenues up 27% year-over-year to $652 million.

Q2 Guidance and Earnings Momentum

The bull case isn’t just historical performance—forward expectations remain robust. For Q2 FY2026, Sandisk guided revenues between $2.55 billion and $2.65 billion, with earnings expected at $3.00 to $3.40 per share. The Zacks consensus is pegging Q2 earnings at $3.25 per share and revenues at $2.62 billion.

Full-year FY2026 consensus estimates are even more compelling: $12.59 earnings per share (up 3.1% over the past 30 days) against FY2025’s $2.99, implying substantial growth. Revenue consensus sits at $10.45 billion, representing 42.1% year-over-year growth from FY2025.

The Valuation Question

The catch? Sandisk isn’t cheap. Trading at 2.74X forward price-to-sales compared to the industry average of 1.75X, the stock commands a premium. Its Value Score of D reflects this reality. However, given the exceptional growth runway from AI adoption, PC refresh cycles, and emerging gaming partnerships, many argue this premium is justified.

The Bottom Line

Sandisk currently holds a Zacks Rank #2 (Buy) rating with a Growth Score of B—a combination suggesting the market still sees significant upside. The company’s control over cutting-edge NAND technology, combined with structural tailwinds from AI and consumer device upgrades, positions it uniquely among storage peers. Whether this justifies the current valuation depends on your belief in the duration and magnitude of these trends over the next 12-24 months.