The shortage in memory and storage products isn't ending anytime soon. It could last for multiple years. Yet, despite the surge in demand likely to last for the foreseeable future, the market has seemingly turned bearish on Sandisk (SNDK +3.36%), whose shares have been in a tailspin for the past month. Entering trading this week, the stock was down roughly 49% from its 52-week high.
With more growth opportunities ahead and a valuation that may not seem all that high, could the top memory stock be a no-brainer buy right now?
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Why is Sandisk stock struggling?
Sandisk's stock has been nosediving of late, but its year-to-date gains still stand at more than 400%. So while it has been struggling recently, it remains one of the best growth stocks of 2026 thus far. But it may still be worrisome to see the stock give back so much of its recent gains.
The company achieved impressive growth in its most recent quarter, which ended on July 3, with revenue of just under $9 billion, up 372% year over year. While the numbers were stellar, the one area where it fell short was on guidance. For the upcoming quarter, the company projects revenue in the range of $10.3 billion to $10.8 billion, while analysts were expecting around $11.2 billion. It's a notable miss, and it may have raised concerns about an eventual slowdown coming for the industry. Sandisk's decline, after all, has been going on for more than just a few days; it's been in a tailspin for well over a month.
NASDAQ: SNDK
Key Data Points
Is Sandisk stock worth buying right now?
At around 17 times its trailing earnings, Sandisk's stock doesn't look highly priced at all. That's a light valuation given that the average stock on the S&P 500 trades at a price-to-earnings multiple of 26. Investors, however, are pricing in a bit of a discount given the longer-term uncertainty ahead; if demand tapers off in the tech sector, Sandisk's results may not be nearly as impressive as they have been of late.
Sandisk, however, may have come down far enough in value where it may be a good buy right now. There may be a mix of profit-taking from investors and market overreaction in the memory and storage space of late that's responsible for this significant pullback. For investors who are willing to take on some risk, Sandisk could be worth buying, as it's definitely a cheap-looking stock -- although it's certainly not a risk-free investment.
