The Artificial Intelligence (AI) Trade You Might Be Missing — It’s Up 700% This Year
The Artificial Intelligence (AI) Trade You Might Be Missing — It’s Up 700% This Year
Publish Date: 2026-06-24 14:13:00
Source Domain: www.theglobeandmail.com
- Investing Approach: Investors should evaluate stocks afresh rather than factoring in prior gains. If a stock is reasonably priced and more growth is anticipated, it should be considered regardless of its past performance.
- Sandisk Stock Performance: Sandisk has surged 727% this year but its market value may suggest to some that further growth is improbable. However, analysts see substantial upside potential in the future.
- Sandisk’s Core Business Expansion: Sandisk produces NAND memory for SSDs, crucial for data storage in data centers. High demand from these centers for SSDs has led to increasing prices, driving revenue and earnings growth.
- Future Demand Predictions: AI hyperscalers are investing heavily in data centers, with AI expenditures forecasted to nearly double through 2027. Analysts project Sandisk’s revenue and earnings per share to grow by 122% and reach $183.05 respectively by the end of fiscal 2027.
- Affordable Valuation: At 12 times forward earnings, Sandisk’s stock price may be undervalued given its fast growth trajectory within an essential industry for data center infrastructure.
- Stock Advisor Consideration: The Motley Fool’s Stock Advisor team identified the 10 best stocks to buy for potential monster returns, although Sandisk was not among these selections. Historical success indicates significant returns from stocks recommended early.
- Historical Success of Stock Advisor Recommendations: Notable examples like Netflix and Nvidia show the potential returns if invested in early stages of these companies.
- Investment Performance: Stock Advisor delivered an average return of 897%, dramatically outperforming the S&P 500’s 208%. The latest top 10 picks are available for investors looking to join the community.
