Why Sandisk Stock Popped Today
Key Points
Sandisk and Kioxia unveiled their new 9th generation flash technology today.
Gen 9 will be 33% faster than the companies' Gen 8 chips.
Sandisk stock has lost more than 40% of its value over the last six weeks, and looks attractive today.
- 10 stocks we like better than Sandisk ›
Sandisk (NASDAQ: SNDK) this morning unveiled its newest, 9th-generation, "high-performance 2Tb QLC 3D flash memory technology designed to support the growing storage demands of AI-driven infrastructure."
Sandisk stock is up 7.2% through 9:50 a.m. ET Wednesday in response.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
Image source: Getty Images.
Sandisk and Kioxia: better together?
Sandisk developed the new flash memory technology in cooperation with Japan's Kioxia Corporation. The companies say their 9th-generation flash chips both read and write data 33% faster than the previous 8th-generation chips and are more power-efficient.
Sandisk and Kioxia designed their 9th-gen chips to be future-proof as well. Recognizing that generative artificial intelligence is evolving toward agent-based and physical AI (where AI processes data directly on a device, such as when it operates robots or self-driving vehicles), the new chips are designed to favor these applications.
What this means for Sandisk
All of which sounds great for Sandisk, but does it justify adding nearly $14 billion to the company's market capitalization in a single morning? Perhaps.
Valued at $181 billion today, Sandisk's stock price has come down a lot since closing at a record $2,335 in late June. That's a haircut of nearly $1,000, or more than 40%! At today's price, Sandisk stock costs less than 17 times trailing earnings -- earnings that are forecast to keep on climbing for at least the next couple years, and average better than 42% annual growth over the next five years, according to data from S&P Global Market Intelligence.
Sandisk's new Gen 9 chip may be only an incremental improvement that keeps it abreast of the competition. But at this price, just maintaining its current position in the memory market should be enough to make Sandisk stock a winner.
Should you buy stock in Sandisk right now?
Before you buy stock in Sandisk, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Sandisk wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $403,337!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,334,946!*
Now, it’s worth noting Stock Advisor’s total average return is 958% — a market-crushing outperformance compared to 214% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
See the 10 stocks »
*Stock Advisor returns as of August 12, 2026.
Rich Smith has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
Recommended Articles
