Here's What $10,000 in Sandisk Stock Could Be Worth if Memory Demand Holds Through 2030

Sandisk (NASDAQ: SNDK) has had a monster year. It's up over 600% this year, making it the top-performing S&P 500 stock. It has had an incredible year, thanks to the strength of the AI build-out, which is consuming nearly all of the memory chip production capacity.

This has created an environment in which Sandisk can thrive; however, the market isn't convinced it will last, despite several outlooks saying it will. This could lead to a major investment opportunity, and if memory demand holds through 2030, Sandisk could be an incredible investment to make right now.

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Sandisk's upside comes from two areas

Sandisk makes NAND memory, which is utilized for long-term information storage. For data centers, the most widely used product that utilizes NAND memory is the solid-state drive (SSD). This represents a bit of a problem for Sandisk, as there isn't much to separate one company's SSD from another's, so it's a commoditized product. Fortunately for Sandisk, nobody in the industry has enough production capacity to produce enough NAND memory, so prices for this commodity are rising.

This has led to incredible growth for both Sandisk and its peers, and it should continue for some time. One of Sandisk's industry peers, Micron, noted in its 2027 market outlook that it expects NAND industry shipments to grow in the low-20s percentage range. So, capacity isn't increasing that much, but AI demand is skyrocketing.

This will keep the NAND industry supply-constrained, and it may be some time before Sandisk and its peers can supply enough NAND memory to keep up with the soaring demand from data centers.

But what will that turn a $10,000 investment into by 2030? First, Sandisk stock should likely trade like a normal stock since a cyclical downturn isn't coming anytime soon. Right now, it trades at 8 times earnings expectations for fiscal year 2027, which ends in June 2027.

SNDK PE Ratio (Forward) data by YCharts

If Sandisk can trade for 20 times earnings at the end of next fiscal year, that's 150% upside right there. If Sandisk can grow 15% each year after that through 2030, that's another 50% growth. I think it's a bit of a conservative estimate, but I wouldn't be surprised to see Sandisk's stock triple over the next few years, turning a $10,000 investment into $30,000.

If Sandisk can do that, then it's a stock well worth buying, as not many stocks can do that in such a short time frame.

Keithen Drury has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Micron Technology. The Motley Fool has a disclosure policy.