Missed Out on Sandisk's 580% Rally? Here Are 3 Chip Stocks You Can Buy Now.

Sandisk (NASDAQ: SNDK) is the S&P 500's (SNPINDEX: ^GSPC) best-performing stock so far this year. It's up 580%, easily outpacing the next-best performers, which are up by just over 200%. After a rally like that, it would be pretty easy to assume that you've missed the boat on Sandisk.

However, if you're looking for smart chip stocks to add to your portfolio amid the AI build-out, a few still look like great buys, including Micron Technology (NASDAQ: MU) and Nvidia (NASDAQ: NVDA). But perhaps surprisingly, so does Sandisk.

In my view, the market is currently discounting all three of these tech companies.

Image source: Getty Images.

Sandisk and Micron

Just because a stock has run up a ton doesn't mean it can't go higher. That's the case with both Micron and Sandisk. Both stocks have been stellar performers so far in 2026, but I don't think they're done quite yet. The business outlook for each of these companies is strong, and that type of real growth is what's necessary to propel them to new heights.

Micron and Sandisk produce memory chips for computing applications: Micron makes NAND and DRAM memory, while Sandisk specializes in NAND. NAND memory is used for long-term data storage (like in solid-state drives) while DRAM provides high-speed memory of the type that is commonly used alongside a computing unit for rapid information access. Both types of memory are vital in data centers, and with data center growth soaring, both Sandisk and Micron stand to benefit.

However, there isn't enough production capacity in the entire memory chip industry to satisfy current demand, and the resulting shortages have caused their prices to skyrocket. This won't be remedied anytime soon, as it takes years to build new chip foundries. Micron's management has forecast that the memory market will remain tight beyond 2027. That bodes well for both of these stocks over at least the next year and a half, and based on their cheap price-to-earnings valuations, they look like solid investments now.

SNDK PE Ratio (Forward) data by YCharts.

While both Micron and Sandisk are well off their all-time highs, the memory chip supply crunch isn't going away anytime soon. That will allow each company to extend its incredible growth over a longer time frame, benefiting shareholders big-time.

Nvidia

Nvidia has been a top option to invest in throughout the AI arms race, but the stock's performance has been less inspiring so far in 2026. However, that doesn't mean that the company isn't doing great. In fact, business is booming. Revenue was up 85% last quarter, and next quarter, Wall Street expects nearly 100% revenue growth. That's pretty good for a company that's already the world's largest by market cap. With the AI data center build-out expected to ramp up further next year, Nvidia is sitting in a perfect spot to take advantage of a global opportunity.

Given Nvidia's successful track record and its growth rates, investors might expect the stock to be trading for 30 to 40 times forward earnings -- the range in which it has traded during the back half of the year over the past few years. However, today, Nvidia trades at just 23.7 times forward earnings.

NVDA PE Ratio (Forward) data by YCharts.

At that level, the market isn't pricing in any of the company's expected success in 2027, despite Wall Street analysts guiding for 42% revenue growth that year. That makes Nvidia a perfect stock to scoop up now before the market catches on to its undervaluation. I think it could soar later this year when the hyperscalers announce their capital expenditure plans for 2027.

Keithen Drury has positions in Nvidia. The Motley Fool has positions in and recommends Micron Technology and Nvidia. The Motley Fool has a disclosure policy.