Core Insights - Sandisk has experienced a significant stock price increase of nearly 1,030% over the past 11 months, making it the best-performing stock in the S&P 500 for 2025 [1][3] Company Performance - The spin-off from Western Digital has allowed Sandisk to focus on its core storage device business, which is crucial for the growing demand in AI infrastructure [3][4] - Sandisk's revenue from data centers currently accounts for about 12% of total revenue, but it is expected to be a major growth driver in the coming years as hyperscalers invest heavily in storage solutions [5] Market Dynamics - The demand for high-speed storage devices is increasing due to the complexities of AI, while the supply has not kept pace, allowing Sandisk to raise prices and achieve its cash goals ahead of schedule [4][5] - Sandisk's market capitalization stands at $74 billion, with a current trading price of $473.83, reflecting a high price-to-earnings ratio of 30.8, which is considered expensive compared to some tech giants [6][8] Investment Considerations - While Sandisk's stock has surged, there are concerns about potential corrections, and a gradual investment strategy such as dollar-cost averaging is suggested for building a stake in the company [7][9] - The long-term growth of Sandisk will depend on sustained demand for AI technologies, which will drive the need for storage solutions [9]
Up 1,000% in Less Than a Year, Is This AI Stock a Buy to Start 2026?