Sandisk was the best-performing company in the S&P 500 in 2025. After separating from Western Digital, Sandisk shares rose 559% in one year, clearly outperforming the index.
Interestingly, historically, the leading stock in the S&P 500 one year has returned an average of 78% in the following year. For example, Palantir, after rising 341% in 2024, showed another 135% increase in 2025. Based on these statistics, Sandisk is noted to have strong growth potential in 2026.
Sandisk's rise is directly related to the artificial intelligence boom. The company is increasing its share of the NAND flash memory market, and the demand for data storage for AI infrastructure has increased sharply. By mid-2025, Sandisk had increased its market share by 2 percentage points, while Samsung, SK Hynix and Kioxia lost share.
Meanwhile, Wall Street is cautious. Analysts believe that the NAND market is nearing a peak and that oversupply may occur in the future. The average target price for Sandisk is currently $280, which is only a 4% increase from the current price.
The author of the article notes that investors can look at alternatives to Sandisk, such as Pure Storage. Analysts predict an upside potential of up to 45% for Pure Storage.
In conclusion, it is emphasized that while Sandisk's past performance has been impressive, expectations for artificial intelligence, market cycles and valuation risks for 2026 should be carefully assessed.
