Sandisk Is Dominating the S&P 500 in 2026. Can It Repeat in 2027?

Sandisk, the NAND memory chip maker, has been the top S&P 500 stock for much of 2026, surpassing Moderna in recent weeks. It has risen nearly 500% this year, but the question remains: will it repeat its performance in 2027? Sandisk's success can be attributed to the high demand for NAND memory chips, used in solid-state drives (SSDs) for data storage, which are in high demand due to the rapid AI data center expansion.

When demand is high and supply is low, prices skyrocket, driving Sandisk's revenue growth throughout 2026. In Q4 of fiscal year 2026, Sandisk's revenue surged 372% year over year. However, investors are concerned that this trend may reverse, causing Sandisk's business to suffer once demand decreases. To mitigate this risk, Sandisk is entering new agreements with customers, locking in committed volumes and defined pricing structures, making its memory chip prices less sensitive to demand and supply fluctuations.

This move is expected to reduce Sandisk's cyclical nature and provide greater visibility for investors. Despite this, the market still views Sandisk stock as cyclical, with a valuation of 19 times trailing earnings and 6.5 times forward earnings, suggesting no significant growth expectations for 2027. For investors, this presents an opportunity, as Sandisk could potentially triple in value this year, placing it among the top-performing S&P 500 stocks.