Could Sandisk Stock Be the Next Nvidia?

One of the hottest stocks over the past several months has undoubtedly been Sandisk (NASDAQ: SNDK). As tech companies have been building out their artificial intelligence capabilities, there's been a growing need for memory storage. And Sandisk, which spun off from Western Digital last year, has benefited from the surge in demand.

The company provides flash memory storage solutions and has been posting strong numbers and generating impressive returns for its shareholders along the way. With so much hype and excitement around the stock of late, could investing in Sandisk be like investing in Nvidia a few years ago?

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Sandisk has soared 1,200% in just six months

It hasn't taken long for Sandisk's stock to get hot. Over just the past six months, it has delivered incredible returns of more than 1,200% for its shareholders. That means if you invested $8,000 into the stock back then, your investment would now be worth approximately $105,000.

It hasn't all been hype fueling the stock, however. The tech company has also been posting some truly impressive results. When it released its earnings numbers back in January, Sandisk didn't just beat expectations, it blew past them. Its adjusted earnings per share of $6.20 (for the period ending Jan. 2) were well above analyst expectations of $3.62. And its revenue of $3.03 billion was far better than estimates of $2.69 billion. On top of that, its guidance was also higher than what Wall Street was looking for. All in all, the company delivered a stellar quarter, which resulted in even greater gains for the stock.

Is Sandisk's stock destined to surge higher?

Sandisk is already up around 145% to start 2026. It's been on a tear, and it's easy to see why the growth stock might rise higher this year as demand for its products remains strong, allowing it to raise prices. The AI-fueled demand could ensure Sandisk remains a hot stock to own for a while, as its valuation is still modest -- it trades at an estimated 15 times its future profits (based on analyst expectations).

While it may not reach Nvidia in market cap anytime soon, as its valuation is only around $86 billion, this could still be one of the best tech stocks to own for the foreseeable future.

However, investors should tread carefully because a stock that has risen so much so fast could also give back gains quickly. There's a lot of hype around the stock, and the danger is if investor sentiment sours on the tech sector or fears rise about too much tech-related spending, Sandisk's stock could fall sharply. If you don't have a high tolerance for risk, you may still be better off avoiding Sandisk.

David Jagielski, CPA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Nvidia and Western Digital. The Motley Fool has a disclosure policy.