Management at Sandisk is keen on leveraging the significant expansion seen in the data center market. Despite the impressive performances of industry giants like Nvidia and Palantir over the past few years, Sandisk, a California-based tech company with a market cap of $66 billion, has emerged as a noteworthy contender. The company was the top performer in the S&P 500 last year, and it continues to grow, achieving a remarkable 74% increase in 2026 thus far.
Sandisk, known for its expertise in data storage devices and edge computing, recently completed a strategic spinoff from Western Digital, which acquired it back in 2016. This spinoff reinvigorated the Sandisk brand, centering its focus on NAND flash technology, particularly in solid-state drives (SSDs), memory cards, and USB drives. While Western Digital refocuses on hard disk drives (HDDs), Sandisk is poised to excel in a rapidly evolving tech landscape.
The company’s significant revenue generation from storage solutions for various devices—including smartphones, laptops, and gaming systems—is complemented by its growth potential in the expanding data center sector. Sandisk is well-positioned to supply storage systems to hyperscale customers essential for cloud computing and complex AI applications. In the first quarter of fiscal 2026, revenue reached $2.3 billion, reflecting a 23% year-over-year increase, despite a slight decline in net income compared to previous results.
CEO David Goeckeler is optimistic about Sandisk’s future, linking growth in data center infrastructure to increasing demands for high-capacity, power-efficient SSDs. The looming expectation of over $1 trillion in investments for data center and AI infrastructure by 2030 presents a substantial opportunity for the company.
Sandisk reported a quarter-over-quarter revenue increase across its business segments, with the edge division being a significant revenue driver. The company is collaborating with five major hyperscale clients, positioning itself to capture an increasing share of data center demand.
While forecasts for AI infrastructure spending vary, with some estimates suggesting figures as high as $3 trillion to $4 trillion by the end of the decade, Sandisk is projected to significantly boost its revenue, increasing from $7.78 billion over the last twelve months to an expected $14 billion in the next fiscal year. With a reasonable forward price-to-earnings ratio of 30.8, Sandisk presents itself as an attractive investment in an ascending market, indicating that it could be a wise choice for investors seeking exposure to the technology sector’s growth.