Should You Buy Sandisk Before Its 8-for-1 Stock Split on Nov. 19?

Sandisk (NASDAQ:SNDK) stock is going to look a bit different after Nov. 19. It's going to go through an 8-for-1 stock split, which will dramatically reduce its share price. Historically, stocks have tended to do well during the periods leading up to splits, but I don't think that's a good enough reason on its own to buy a stock. These events may get some attention from investors, but they don’t actually change anything meaningful about the value of the underlying business.

And the business is what investors should be focused on. Luckily for investors who have their eyes on it now, Sandisk stock looks like a great buy based on the fundamentals.

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Sandisk has more growth ahead

The reason some people believe stock-split stocks perform better is pretty simple: Companies generally only split their stocks after their share prices have risen dramatically, and when management expects the share price to stay elevated. The most common reason for such a stock performance is a business that’s successful in the first place. Winners usually tend to keep on winning, so it makes sense to stick with stocks even after a stock split.

Sandisk's future is very bright. It makes NAND memory, which is utilized in devices ranging from smartphones to solid-state drives (SSDs). The biggest demand for NAND memory now, however, is in data centers, as they require massive amounts of data storage to house all of the information that AI models are being trained on and using for inference, as well as prompt histories from users’ previous interactions with those models.

Right now, Sandisk's revenue growth is off the charts, thanks to a global shortage of memory chips that has resulted in soaring prices.

SNDK Revenue (Quarterly YoY Growth) data by YCharts

Its growth rate will come down over the next year, but its business will remain quite strong due to the scale of the AI build-out. This will allow Sandisk to repurchase shares, which should boost earnings per share. Considering how cheap Sandisk's stock is from a P/E standpoint right now, this would make a ton of sense.

SNDK PE Ratio (Forward) data by YCharts

As a result, I won't be surprised if Sandisk is a top performer over the next few years. The massive demand for its products is providing a huge boost to its bottom line. With the data center build-out not expected to slow down until at least 2030, there's plenty of time for Sandisk to repurchase tons of stock and meaningfully shift its business model to take long-term advantage of the boom it's currently experiencing.

Sandisk may have had a strong 2026, but I think its future is just as bright. Although this may be the last stock split it goes through for a long time, I think investors can take advantage of it and scoop up shares now.

Keithen Drury 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.