Sandisk (SNDK -5.97%) has been among the hottest tech stocks to own this year, but it has been slowing down of late. While it's up over 650% since the start of 2026, it is now down about 24% from its 52-week high.
Is now a good time for investors to buy the tech stock, or is it better to wait for an even deeper dip in its price?
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Sandisk stock looks dirt cheap, but only if you trust analyst projections
Although Sandisk's stock is sitting on some significant gains this year, it still doesn't look overvalued based on analyst projections. The company's earnings have been soaring due to inflated demand and prices for memory and storage products. The company sells a wide range of memory cards and storage devices, and its brand is synonymous with not only speed but also reliability.
Demand is expected to remain insatiable, given the investments in artificial intelligence (AI). And according to analysts, the stock is trading at an estimated eight times its future profits, which is absurdly cheap as the average stock on the S&P 500 trades at a forward earnings multiple of around 20.
However, there is always going to be an element of risk due to the uncertainty of what lies ahead, particularly in the tech world, where things can change quickly. If companies scale back or curb AI-related investments, that may lead to a trickle-down effect that impacts the demand for Sandisk's products. Currently, analysts have a rosy outlook for Sandisk, and if that continues to be the case, the stock may indeed surge higher.
NASDAQ: SNDK
Key Data Points
Is Sandisk's stock a good buy right now?
Sandisk has generated tremendous returns for investors this year, but when a stock rises so quickly in value, there's also the risk that it can just as quickly give back those gains.
My main concern about the stock is that, while Sandisk's business is doing exceptionally well right now, the outlook may change with the Fed raising interest rates last week and potentially more rate hikes ahead. If companies expect higher rates, that could derail feverish tech spending in the near future. And any hint of a slowdown could spell trouble for a stock such as Sandisk, with much of its valuation dependent on continually strong growth ahead.
I believe the stock may be due for a decline in the latter part of the year, and it may be a more attractive buy then. While it may not seem expensive, Sandisk's stock is still a bit risky at its current valuation.
