Sandisk (SNDK) Has Become the Hottest Tech Stock to Pursue in 2026

In only 11 trading days so far this year, Sandisk Corporation SNDK stock is already up a blazing +70% to over $400 a share, making the clear argument for the hottest tech stock to pursue in 2026.To that point, Sandisk’s explosive rally isn’t coming out of nowhere but instead is the result of a scarcity in the memory chip market, specifically for non-volatile flash memory referred to as NAND.Being a major NAND producer, Sandisk is directly benefiting from this scarcity as AI infrastructure requires enormous amounts of high-performance flash storage and is pushing NAND prices higher with companies racing to build out AI capacity. Sandisk Performance OverviewNotably, Sandisk was spun off from Western Digital WDC to split its business into two focused, independent companies — one for hard-disk drives (HDDs) and one for flash memory. The flash business became Sandisk Corporation after a strategic review from Western Digital concluded that its HDD and flash/NAND divisions had different markets, growth profiles, and capital needs.AI infrastructure demand for enterprise HDD has been off the charts as well, but there has been a broader industry-wide scarcity for NAND, which has catapulted Sandisk stock over +700% since becoming its own publicly traded company in February 2025, with Western Digital shares up more than +300% during this period.Image Source: Zacks Investment Research How NAND WorksAforementioned, NAND is a type of non-volatile flash memory, meaning it keeps data even when the power is off, and is considered the foundation of most modern storage devices. As a storage technology, NAND flash is used in SSDs, USB drives, SD cards, smartphones, and tablets. It’s called “NAND” because its internal structure is based on the NOT-AND logic gate, which determines how data is stored in each memory cell.NAND uses floating-gate transistors to trap electrons and represent data bits, and because it doesn’t need power to retain those electrons, it’s considered non-volatile. Furthermore, NAND is optimized for high density, fast speeds, durability, and low power consumption, which is why it dominates consumer storage.Regarding the current AI and data-center boom, solid-state drives (SSDs) built on NAND are essential for feeding data to graphic processing units (GPUs) and other AI chips, accelerators, or servers. Sandisk’s Robust Financial FiguresSandisk is not a typical spinoff company, which tends to create value over time, but not immediately. While spinoffs can outperform, it's far from guaranteed, with Sandisk’s robust top and bottom lines being the exception, not the rule.Based on Zacks estimates, Sandisk’s sales are expected to soar 42% in fiscal 2026 to $10.45 billion versus $7.36 billion last year. Plus, FY27 sales are projected to climb another 26% to $13.15 billion.Image Source: Zacks Investment ResearchMore impressive, annual earnings are expected to skyrocket 350% this year to $13.46 per share from EPS of $2.99 in 2025. Better still, FY27 EPS is forecasted to soar another 93% to a whopping $25.94.  Propelling the relentless rally in Sandisk stock is that FY26 and FY27 EPS revisions are up over 10% in the last 60 days and have now risen well over 100% in the last three months from estimates of $6.31 and $10.39, respectively.Image Source: Zacks Investment Research SNDK is Still Fairly ValuedConsidering Sandisk has a stronghold on a pivotal technology, SNDK is still trading at a reasonable 30X forward earnings multiple despite its unprecedented rally in the last year. This is not a noticeable stretch to the benchmark S&P 500 and is roughly on par with Western Digital and their Zacks Computer-Storage Devices Industry average of 29X forward earnings.Image Source: Zacks Investment Research Bottom Line  Sandisk is certainly making the argument for the hottest tech stock to pursue in 2026, with SNDK currently boasting a Zacks Rank #1 (Strong Buy) based on the blazing trend of rising EPS revisions. Although a sharp pullback would present a more ideal entry point, the accelerating demand for NAND suggests more upside, especially with Sandisk stock still being reasonably valued in terms of P/E. #1 Semiconductor Stock to Buy (Not NVDA)The incredible demand for data is fueling the market's next digital gold rush. As data centers continue to be built and constantly upgraded, the companies that provide the hardware for these behemoths will become the NVIDIAs of tomorrow.One under-the-radar chipmaker is uniquely positioned to take advantage of the next growth stage of this market. It specializes in semiconductor products that titans like NVIDIA don't build. It's just beginning to enter the spotlight, which is exactly where you want to be.See This Stock Now for Free >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Sandisk Corporation (SNDK): Free Stock Analysis Report Western Digital Corporation (WDC): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks