No stock in the S&P 500 has done better than Sandisk (SNDK 10.59%) this year, as it's up an astounding 749% as of June 29. The memory maker's share price has surpassed $2,000, something that would've surprised even the most optimistic investor six months ago.
Rapid growth and a four-figure share price often spark speculation about a stock split, in which a company divides its shares into smaller units. The value of the company doesn't change, but a stock split lowers the share price, making it more accessible to investors and improving liquidity.
Sandisk hasn't announced an upcoming stock split at the time of this writing. Let's consider how likely it is for 2026.
Image source: Getty Images.
Sandisk's incredible run
While Sandisk's year-to-date returns are impressive enough, they get even better if you go back to February 2025, when it split off from Western Digital. Since then, Sandisk has climbed 5,500%.
The growth driver is the AI memory bottleneck. AI companies need memory, including high-bandwidth memory (HBM) for AI accelerators and conventional DRAM and NAND flash memory for storing training data and cloud workloads.
Only three companies (SK Hynix, Micron Technology, and Samsung) make HBM, and because it's so profitable, they've prioritized this type of memory. Sandisk is purely a NAND company, so it benefits from the supply constraints in that market. Global NAND revenue reached $46 billion in Q1 2026, a 246% year-over-year increase, according to Counterpoint Research. Sandisk has a 13% share of the NAND market.
NASDAQ: SNDK
Key Data Points
Sandisk's latest earnings reflect unprecedented demand for memory. In its third quarter of fiscal year 2026, which ended April 3, Sandisk reported $6 billion in revenue, up 251% year over year. The company's gross margin has also improved significantly, rising from 50.9% in Q2 to 78.4% in Q3.
Industry insiders expect the memory shortage to last into 2028. If that's the case, Sandisk looks like a good bet to continue growing, and a stock split may be in the near future. But there is a caveat to this assumption.
The memory cycle could peak sooner than expected
Memory is famously a cyclical business that goes through boom-and-bust patterns. Right now, demand is high, and memory is in short supply. In the past, cycles have eventually peaked, enough supply has shown up to meet demand, and the market flips from scarcity to oversupply. When memory is no longer the hot commodity, the earnings growth stops, and memory stocks decline.
There's no sign of the cycle peaking anytime soon, especially as hyperscalers pour money into AI infrastructure. But the AI market has been showing some cracks. OpenAI is considering delaying its IPO until 2027, and there are concerns that tech companies aren't making enough money from AI to justify the massive capital expenditures. If memory demand slows sooner than expected, Sandisk and other memory makers could be in line for a sharp drop.
Will Sandisk stock split this year?
I lean yes for Sandisk conducting a stock split by the end of 2026. The company checks all the typical boxes: fast growth, a high price tag, and positive momentum. A stock split could get it into a price range that attracts more retail investors on a budget.
If you're debating whether to invest in Sandisk, it still looks like a company with plenty of room to run, but it's also highly volatile. You may want to build up a position over time by dollar-cost averaging instead of making one large lump-sum investment.
Crucially, you shouldn't wait for a stock split to buy Sandisk if you believe it's a good investment. There's no guarantee management will decide to split the company's stock. Even if it does, the price could be up another $500 or $1,000 by then. If you want to start with a small position, see if your broker offers fractional shares. This is an easy way to invest when you don't want to buy a full share because of the cost.
