Recent advances in artificial intelligence (AI) have shifted the tech landscape, minting a string of stock winners along the way. One of those is Sandisk (SNDK -13.47%). It's been less than a year since it was spun off from Western Digital in early 2025. In the short time since its debut, Sandisk has become a Wall Street darling, as it supplies memory chips used to underpin AI.

The company's impressive business performance has fueled a surge in its stock price. Sandisk shares have surged 378% thus far in 2026 (as of this writing), and are up 4553% over the past year and 3,050% since its spin-off.

In conjunction with its fiscal 2027 first-quarter financial report, Sandisk announced plans to split its stock for the first time since its debut. This long-rumored announcement has sparked a wave of interest in the semiconductor stock.

Let's take a look at the details, the company's recent results, and why Wall Street thinks there is still upside ahead.

Image source: The Motley Fool.

The details

After the market close on Thursday, Sandisk announced that its board of directors had approved an 8-for-1 stock split. "The stock split will be effected through an amendment to Sandisk's Amended and Restated Certificate of Incorporation," the company noted in its earnings report.

Shareholders of record as of Monday, Nov. 9, 2026, will receive an additional seven shares of stock for each share they own. Those shares will be distributed after the close of business on Thursday, Nov. 19. The stock is expected to begin split-adjusted trading when the market opens on Friday, Nov. 20.

As is typically the case, shareholders won't need to take any action to participate in the stock split. The brokerage or investment bank will handle the details behind the scenes, and shares will be deposited directly into investors' brokerage accounts once the stock split has taken effect.

The process is complex, so the additional shares may not show up immediately after the market close on Nov. 19. The schedule may vary slightly from brokerage to brokerage, and it may take several days for the newly minted shares to appear.

Actual numbers help provide context. For each share of Sandisk stock an investor holds -- currently trading for roughly $1,200 per share (as of this writing) -- post-split, shareholders will own 8 shares worth $150 each.

What's driving the gains?

Sandisk's financial results help illustrate the surging demand for its memory chips. For its fiscal 2027 first quarter (ended Oct. 2), the company generated revenue of $11 billion, which surged 378% year over year and 23% quarter over quarter. This drove adjusted earnings per share (EPS) that soared more than 40-fold to $49.51.

For context, analysts' consensus estimates were calling for revenue of $10.7 billion and adjusted EPS of $46.67, so the company cleared both hurdles with ease.

Management's commentary was equally revealing. CEO David Goeckeler noted, "We're hearing from our customers that they have underestimated the amount of NAND they need to run their infrastructure." He went on to say that multiple customers have revised their contracts to increase the amount of supply. CFO Luis Visoso went further, noting that "Our [memory] pipeline exceeds our supply throughout the end of the decade."

Investors have expressed concerns about the durability of AI demand and the emerging potential for competition from China, but Sandisk has taken steps to ensure its windfall continues. The company has shifted to long-term supply agreements with major customers, locking them into minimum prices, with the average duration of the contract lasting four years or longer.

SNDK - Sandisk $1,150.89 -$179.16 (-13.47%) NASDAQ · As of 4:00 PM ET 10/30/26 Premium Feature Moneyball Superscore 81 /100 Key data points Market cap Market cap calculated using publicly traded shares outstanding only. Does not include unlisted, private, or dual-class non-traded shares. Implied market cap may vary. $192.23B Day's range $1,115.16 - $1,239.00 52wk range $183.00 - $2,354.39 Volume 17.5M Avg volume 11M Gross margin 71.47%

Is Sandisk stock a buy?

Wall Street is bullish about Sandisk's future prospects. Of the 25 analysts who offered an opinion in October, 84% rate it a buy or strong buy. Furthermore, Wall Street's average price target for the stock is about $2,143, implying additional upside of 85%.

Melius Research analyst Ben Reitzes is far more bullish than his Wall Street colleagues, with a buy rating and $3,600 price target -- the highest on Wall Street -- suggesting the stock could triple from here.

He cites strong demand for High-Bandwidth Flash memory, firm NAND pricing, and strong free cash flow as the basis for his bullish thesis. Reitzes believes Sandisk can buy back as much as $100 billion in stock over the next three years.

The stock has fallen more than 50% from its peak in late June, fueled by concerns about the resilience of AI demand and the potential for emerging competition from China. However, Sandisk now trades for less than 16 times earnings and 5 times forward earnings.

For investors who believe, as I do, that this is just the beginning for AI, Sandisk stock is a compelling buy.