Sandisk’s New Business Model Is Transforming the Business. Now Is the Time to Buy the Stock.
Sandisk (NASDAQ: SNDK) makes NAND memory chips, which are primarily used for long-term data storage in devices like solid-state drives. That may sound like a pretty boring business with not a lot of innovation going on in it — and you’d be right.
That’s why Sandisk and its peers are normally pretty boring stocks, but all of that changed in 2026. Demand for storage skyrocketed alongside data center build-outs, consuming all available production capacity. All of a sudden, Sandisk’s products were hot commodities, and prices skyrocketed, which translated into incredible stock growth for Sandisk.
It’s up nearly 500% this year — second-best in the S&P 500. This also allowed Sandisk to form a new, sustainable business model. I think the transition to this model will help Sandisk tremendously over the long term and eliminate some of the cyclicality typically associated with companies in the memory chip industry.
Source: www.fool.com — article syndicated from the publisher’s feed; all rights remain with the original publisher.