Sandisk and its peers are benefiting from a memory boom, with reports of prices doubling and adjusted earnings per share set to double in the current quarter. The stock soared last month as the memory sector continues to face a shortage due to the AI boom, with Sandisk exceeding estimates in its latest earnings report.

Sandisk’s stock surged after Nvidia CEO’s comments on AI storage and predictions of a rise in NAND flash contract prices. Analysts raised price targets as Sandisk reported a 31% revenue increase in the second quarter, with adjusted earnings per share jumping to $6.20. The company forecasts further growth in revenue and earnings for the third quarter.

Considerations for buying Sandisk stock include the advice from the Motley Fool Stock Advisor team, who did not include Sandisk in their list of the 10 best stocks to buy now. The team has a history of identifying high-performing stocks, with significant returns on past recommendations like Netflix and Nvidia. Sandisk’s future growth potential in the AI market remains a key factor for investors to consider.

Read more at Nasdaq: Why Sandisk Stock Skyrocketed 143% in January