Up 131 YTD%, Should You Buy Sandisk Stock Right Now?

Sandisk (NASDAQ: SNDK) stock was a shooting star in 2025, rising a ridiculous 1,475% since it went public last February after spinning off of Western Digital.

In 2026, as it approaches one year since going public on Feb. 24, it has already gained 131% year to date (YTD).

What has driven this incredible surge, and can it possibly continue? Let's take a look to see if Sandisk stock is still a buy.

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Up almost 1,500% in a year

While Sandisk is new to the market, it has been around since 1988 as a maker of solid-state storage drives and later portable flash drives and memory cards.

While it still makes those products for consumers, its biggest revenue drivers are NAND flash drives and solid-state drives for mobile phones, data centers, and gaming storage, among other uses.

It is typically one of five major players across these markets, with some of the competitors changing depending on the product. Across most of them, including data centers and smartphones, it competes with Micron and Samsung, while it competes with Seagate in gaming storage drives.

It has been able to gain market share as a pure-play company in its markets, rather than when it was part of Western Digital. The primary revenue catalyst has been its solid-state drives for data centers, which have seen incredible demand and not enough supply, given the rapid expansion of data centers due to the growing need for artificial intelligence (AI) compute. Sandisk's data center revenue grew 64% in the last quarter, compared to the previous quarter.

Overall in the most recent quarter, revenue jumped 31% from the previous quarter and 61% year over year. Net income rose a ridiculous 617% from the previous quarter and 672% year over year.

Is Sandisk still a buy?

The rally has continued into 2026, as Sandisk stock has risen 131% year to date as of Feb. 10.

It has been boosted by a blowout earnings report and outlook at the end of January. But there have also been reports that due to the incredible demand for its data center and enterprise drives, it will double its prices in 2026, potentially in the first quarter, according to analysts.

For the current quarter, its fiscal Q3, Sandisk is targeting $4.4 billion to $4.8 billion in revenue, which would be 47% to 60% growth over Q2. Further, its adjusted earnings are targeted for $12 to $14 per share, which would be up double from $6.20 per share last quarter. Also, its gross margin is pegged at 64.9% to 66.9% -- up from 50.9%.

The supercycle continues for Sandisk, as demand outpaces available supply -- and it could last for years. There are some major competitors in its market, but it benefits from having this as its only function, which will allow it to focus its investment and resources squarely on this business.

So, yes, even though it's already up 131% YTD and 1,500% over the past year, Sandisk has more room to run. Given its incredible earnings power, it has a forward price-to-earnings (P/E) ratio of just 14, which makes it attractive from a valuation perspective.

Dave Kovaleski has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Micron Technology and Western Digital. The Motley Fool has a disclosure policy.