Stock-Split Watch: Is Sandisk Next?

Sandisk (NASDAQ: SNDK) has experienced an unprecedented run since its spinoff in February 2025. Since separating from Western Digital, the stock has risen by over 4,700%!

Amid these gains, the nominal share price of the semiconductor stock has reached as high as $2,354 per share and currently trades at around $1,740 per share as of the time of this writing. Although management has not announced plans to split its stock, it should not surprise investors if Sandisk announces a stock split. Here's why.

Image source: The Motley Fool.

What a Sandisk stock split might mean

Sandisk is now the eighth most expensive stock in terms of nominal price trading on U.S. markets today. Among tech names, only ASML trades at a higher price.

Moreover, its price is either close to or surpassing the levels at which tech giants like Broadcom, Alphabet, and Amazon split their shares earlier in the decade.

The most significant obstacle to a split may be the stock's history. Although Sandisk existed well before Western Digital bought it in 2015, the current iteration of Sandisk has only existed since early last year.

The stock's massive gains seemed to come out of nowhere during that time. However, demand for its flash memory led to more than $20.2 billion in revenue in fiscal 2026 (ended July 3), a 175% yearly increase. Since the cost of revenue rose by only 12% during that time, it turned a profit of $11.4 billion, far above the $1.6 billion loss in the prior year.

This growth gives it a relatively modest 24 price-to-earnings (P/E) ratio. Indeed, the memory market is historically volatile, meaning many of those gains could reverse in a severe downturn.

Nonetheless, the nominal price is so low that a 10-for-1 stock split, combined with a 90% drop in the stock, would keep the price well above penny stock levels. I do not believe either of these scenarios will occur, as the company just made the next memory crash a lot less scary, but it shows how little Sandisk has to lose by initiating a stock split.

Additionally, while stock splits do not directly change the value of one's investment, investors could benefit marginally. A lower nominal price puts full shares in the price range of small investors.

Furthermore, being able to sell 100 shares in a covered call means one has to own around $174,000 in Sandisk stock now. If a split were to occur that goes down significantly, it could spur more options activity. Thus, a stock split could benefit Sandisk in the long term.

Sandisk and a stock split

Sandisk has announced no plan to split its stock, but it should not surprise investors if one occurs.

Sandisk is under no requirement to split its shares, and splits do not directly change the value of investor holdings. Also, if history is an indication, memory-driven boom cycles can experience massive drops during a bust.

However, Sandisk's nominal price is so high that it is unlikely to become a penny stock, even in the worst of circumstances. Moreover, a lower nominal price could attract more small investors and options activity. This implies that Sandisk has more to gain than lose by splitting its shares.

Will Healy has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends ASML, Alphabet, Amazon, Broadcom, and Western Digital. The Motley Fool has a disclosure policy.