Sandisk (SNDK 5.59%) stock has made investors significantly richer in the past year since its separation from Western Digital in February 2025. An investment of $10,000 in shares of Sandisk at that time is now worth roughly $131,380.
Investors may be wondering whether it makes sense to hold Sandisk in anticipation of further gains. The company's earnings are multiplying at an incredible pace, and that may even lead some investors to believe that this artificial intelligence (AI) stock could help them become millionaires.
Let's take a closer look at Sandisk's prospects and determine whether it can indeed deliver life-changing gains.
Image source: Getty Images.
Sandisk's red-hot rally isn't going to end anytime soon
Sandisk is operating in a market where the demand for its products is substantially outpacing supply. The company makes flash storage products used in applications such as data centers, computers, and smartphones.
The company's solid state drives (SSDs) are now in great demand, especially from AI data centers that need to store massive amounts of data to train large language models (LLMs) and run inference applications. In fact, the demand for the NAND flash storage products that Sandisk manufactures is so strong that its supply is expected to remain constrained beyond 2026.
This explains why the healthy NAND flash pricing environment is here to stay. Market research firm TrendForce anticipates an increase of 55% to 60% in NAND flash prices this quarter. Moreover, analysts at Bank of America forecast a 45% increase in NAND flash revenue in 2026, driven by a 26% jump in average selling price (ASP).
Actual price increases, however, are likely to be much stronger, as companies investing hundreds of billions of dollars in data center infrastructure are willing to pay a huge premium to get their hands on storage products that Sandisk sells. Not surprisingly, Sandisk has reportedly doubled the prices of its 3D NAND enterprise SSDs this quarter on the back of strong demand from hyperscalers.
As a result, it is easy to see why the company's earnings are expected to multiply significantly from last year's level of $2.99 per share.
Data by YCharts.
Can this stock really make you a millionaire?
Buying a stock based solely on the hope that it could change your life is not a smart move. Any weaknesses in the AI infrastructure market could bring Sandisk's terrific rally to a halt. That's why it is always recommended to build a diversified portfolio. The good part is that buying Sandisk as a part of a diversified portfolio could indeed help investors achieve their long-term goal of becoming millionaires.
After all, the company is trading at just 16 times forward earnings, well below the tech-laden Nasdaq-100 index's forward earnings multiple of 25. The chart above shows that Sandisk's earnings could jump to $80.90 per share by next year. If it trades in line with the Nasdaq-100 index's forward earnings multiple at that time, its stock could triple from current levels, suggesting it isn't too late for investors to buy Sandisk.
