Sandisk stock has fallen 46% from its late-June high even as revenue skyrockets on surging demand for NAND flash memory. The company reported fiscal 2026 fourth-quarter revenue up 372% year over year, with full-year revenue up 175%, driven by a 437% increase in data center revenue and a 195% increase in its edge segment. Management argues AI is fundamentally a memory-centric, storage-intensive problem that is reshaping demand for NAND, but the market worries that memory's boom-and-bust history could repeat if AI technology evolves or more cost-effective solutions emerge. At the current price, Sandisk trades at 17 times trailing 12-month earnings, near its cheapest valuation since becoming net income positive, which could make it worth a small position for risk-tolerant investors.
