Skip to navigationSkip to main contentSkip to right columnADVERTISEMENTAdam Spatacco, The Motley FoolWed, June 24, 2026 at 3:56 PM GMT+2 5 min readThe memory and storage segment of the semiconductor sector is in the midst of a powerful boom, fueled by the artificial intelligence (AI) infrastructure build-out. With hyperscalers and others pouring hundreds of billions of dollars into new data centers, demand for high-capacity solid-state drives (SSDs) is far outpacing the world's capacity to manufacture them. As a leading producer of NAND flash storage and enterprise SSDs, Sandisk (NASDAQ: SNDK) has been one of the clearest beneficiaries of this movement.So far this year, Sandisk stock has surged 873% -- making it the top-performer in the Nasdaq-100 by a wide margin. While such gains might suggest to some that Sandisk's rally has become overdone, a close look at the company's operational trends and valuation points to the potential for further upside.Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »Let's dig into what the next year could look like for Sandisk investors. Spoiler alert: The stock could still be a multibagger from here.Breaking down the memory up cycle's tailwindsThe primary driver behind Sandisk's rise is big tech's insatiable demand for memory and storage solutions. AI training clusters require vast quantities of high-performance storage alongside accelerated compute systems, and data center operators are deploying those systems at a prodigious pace.Also, large enterprises and cloud infrastructure providers are refreshing their aging servers by adding denser, faster SSDs; meanwhile, consumer demand for premium AI-enabled devices supports baseline volumes. The imbalance between supply and demand has allowed all of the memory makers to boost their average selling prices significantly. That has translated into noticeable profit margin expansion and top-line momentum for Sandisk.SNDK Revenue (TTM) data by YCharts.New contract structures give Sandisk strong earnings visibilityOne of the bearish talking points surrounding an investment in Sandisk is the cyclical nature of the memory and storage chip market. While this argument has some validity, Sandisk has made an interesting move that suggests that the memory and storage solutions markets are becoming more secular in the context of the broader AI infrastructure narrative.Sandisk's management recently highlighted its new business model, which features multiyear supply agreements that provide the company with exceptional visibility into its future sales and profits -- something it historically lacked. During Sandisk's fiscal third-quarter earnings call, management shared that the company has signed five multiyear supply agreements this year -- and just the three it inked in its most recent fiscal quarter carry a minimum total value of $42 billion.Terms and Privacy PolicyPrivacy & Cookie SettingsMore Info