Could Buying Sandisk Stock Today Set You Up for Life?

Sandisk (NASDAQ: SNDK) has been one of the most incredible investment stories I can recall. The stock is up 4,500% over the past year, turning every $10,000 invested into nearly $460,000 in just one year. Investors dream of short-term gains like that, but is there still more to be had?

Let's take a look at what's in store for Sandisk's stock, and see if buying today could set you up for life.

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Sandisk has more upside remaining

Unfortunately, investors may have missed the boat for life-changing returns on this one. If the stock rose another 4,500% at today's market value, it would be an $11.7 trillion company. That's highly unlikely, but I still think there are solid reasons to invest in Sandisk stock moving forward.

Sandisk makes NAND memory, which is primarily used in solid-state drives (SSDs). SSDs are in high demand thanks to the data center build-out, as SSDs are a critical part of long-term data storage in these facilities. With rising demand and dwindling supply, commodity prices are soaring, causing Sandisk to increase the prices on its products. Because this is normally a small market, Sandisk doesn't have the production capacity to ramp up supply and equalize the prices. This pattern may persist for a while, driving strong revenue growth for Sandisk until data center demand decreases or NAND memory production increases.

Wall Street is bullish on Sandisk's short-term prospects, and projects 332% revenue growth for its fiscal 2026's fourth quarter (ending June 2026) and 116% growth for fiscak 2027. So, Sandisk's rapid rise may not be finished.

Normally, when a stock rises 4,500% in one year, it looks incredibly overvalued, but that's not the case with Sandisk. Sandisk trades for 26 times FY 2026 earnings projections and 10 times FY 2027 earnings. Those aren't unreasonable prices, making Sandisk a compelling investment idea.

SNDK PE Ratio (Forward) data by YCharts

However, investors need to be careful. The primary reason Sandisk is soaring is due to the price spike caused by the memory chip shortage. If demand decreases or supply increases, reducing product prices, Sandisk could struggle, and the stock could be heavily sold off. With the artificial intelligence data center build-out expected to last through at least 2030, Sandisk could be OK for a while.

But investors should keep it on a short leash and continue to monitor the business for signs of falling profitability or slowing growth. Until then, Sandisk stock still looks like a solid buy and could easily double or triple over the next year as more growth is realized.

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.