An investment of $1,000 made in shares of Sandisk (SNDK 5.59%) just over a year ago -- when it separated from Western Digital and started trading on the stock market -- is worth an impressive $15,670 as of this writing.
This stunning multibagger performance is the result of a terrific jump in Sandisk's revenue and earnings in recent quarters. The company is riding the wave of eye-popping demand for its flash storage memory chips. Given that the demand for its products is outpacing supply, Sandisk benefits from a favorable pricing environment that's driving exponential growth in its earnings.
But can this high-flying tech stock deliver more upside following its phenomenal gains in the past year? More importantly, can it replicate its performance and jump by 10x from current levels? Let's find out.
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The flash storage market's dynamics point toward better times for Sandisk
Putting all your money into Sandisk stock and expecting it to make you significantly richer isn't a smart move. After all, any weaknesses in Sandisk's growth in the coming quarters could trigger a massive sell-off following its big jump in the past year. It is always a good idea to build a diversified portfolio to reduce reliance on a single stock or sector.
However, buying Sandisk as part of a diversified portfolio could indeed be a smart move. That's because the primary factor driving the surge in Sandisk stock is here to stay. Storage demand from artificial intelligence (AI) data centers is so strong that manufacturers have run out of supply for 2026. Moreover, this shortage isn't going to end anytime soon.
Taiwan-based NAND flash company Phison Electronics believes that the industry-wide shortage may continue for the next decade, primarily driven by data center demand. Precedence Research predicts that the solid-state drive (SSD) market, which is one of the products Sandisk sells, could jump by 5.5x over the next decade and generate annual revenue of $305 billion in 2035.
Throw in the fact that memory manufacturers aren't particularly focused on bringing new NAND production facilities online, and it is likely the supply shortage will persist in the long run. As a result, the remarkable earnings growth that Sandisk is enjoying seems sustainable.
NASDAQ: SNDK
Key Data Points
But can the stock really jump by 10x?
Sandisk finished its fiscal year 2025 (which ended in June 2025) with $2.99 per share in earnings. The favorable demand-supply environment in the NAND flash market explains why its earnings are set to skyrocket.
Data by YCharts.
Earnings of $81.01 per share in fiscal 2028, multiplied by the tech-focused Nasdaq-100 index's forward earnings multiple of 25.3, suggest a stock price of $2,050 in the next couple of years, just over triple its current stock price.
These points discussed suggest that Sandisk could maintain healthy earnings growth beyond the next three years. So, while Sandisk may or may not jump by 10x from current levels, it has the potential to become a multibagger once again and deliver outstanding gains to investors in the long run.
