SanDisk stock has surged over sixfold since going public earlier this year, but it’s undervalued relative to other AI chip stocks. This valuation discrepancy largely has to do with expectations of how long favorable demand trends for the memory chip company will last. There may be potential for SanDisk to add to its gains, as signs emerge that these trends will last throughout 2026 and perhaps into 2027.

Last February, SanDisk (NASDAQ: SNDK) completed its spinoff from Western Digital (NASDAQ: WDC), debuting at a price of $35.06 per share. In less than a year, the memory chip company’s share price has surged by nearly 560%, to around $230 per share. Even after this big rally, shares appear undervalued, relative to expected growth in the coming year.

During the first few months following the spinoff, SanDisk experienced mixed price performance. However, this changed during the late summer. That’s when the market caught on to how AI-related demand for NAND flash memory chips was quickly outstripping supply. NAND memory providers, such as SanDisk, were able to quickly raise prices.

Due to the high uncertainty, SanDisk trades for just 16 times forward earnings. As AI chip stocks like Nvidia and Advanced Micro Devices trade at forward P/E ratios in the 20 to 30 range, SanDisk appears to be a value stock by comparison. However, as BNP Paribas analyst Karl Ackerman recently argued, the current “historic DRAM and NAND upcycle … could span 2026,” as supplies remain tight.

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Read more at Yahoo Finance: There’s a Growth Stock Trading at Value Prices