Prediction: Sandisk Will Become a Trillion-Dollar Company by the End of 2027

Written by Harsh Chauhan for The Motley Fool->

Sandisk stock has jumped by 7x in 2026 already, and it looks like it can still soar significantly over the next 18 months.

The adoption of agentic AI solutions will be a tailwind for the NAND flash memory market, significantly raising demand for Sandisk's products.

The NAND flash market's 2027 revenue estimate and Sandisk's market share indicate that it could indeed join the trillion-dollar club by the end of next year.

Memory has emerged as one of the biggest bottlenecks in the artificial intelligence (AI) infrastructure ecosystem, creating a massive supply shortage and leading to a stunning jump in prices.

AI chip designers have been packing in more high-bandwidth memory (HBM) into their chips, while AI data centers have been quickly cornering the available supply of storage-focused memory chips -- NAND flash -- so that they can store the huge amounts of data needed for AI training and inference. This isn't surprising, as AI processors are now capable of completing calculations before they can receive data from memory storage and other processing units.

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And now, the growing adoption of agentic AI applications will further increase the demand for memory chips. That's because agentic AI applications involve solving multiple queries to complete a task autonomously, thereby creating the need for faster compute memory and more data. This is why market research firm TrendForce has substantially increased its revenue estimates for the memory industry for 2026 and 2027.

That's great news for Sandisk (NASDAQ: SNDK). This AI stock has jumped by 7x so far in 2026, and the latest update from TrendForce suggests it still has multibagger potential. In fact, I won't be surprised to see Sandisk becoming one of the largest companies in the world by the end of 2027 by entering the $1 trillion market cap club.

Earlier this year, TrendForce noted that the NAND flash market's revenue will jump by 112% to $147.3 billion in 2026. The firm was anticipating a much slower increase of 19% in NAND flash revenue to $175.7 billion in 2027. However, it has now significantly increased those estimates.

The growing adoption of agentic AI applications has encouraged TrendForce to raise its 2026 NAND flash revenue estimate to $270.6 billion, suggesting a massive increase of 280.7% over last year. What's more, it expects another 40% increase in the NAND flash industry's revenue in 2027 to just over $379 billion. The firm notes that demand for flash-based high-performance solid-state drives (SSDs) will increase due to the growth in AI inference, training, and agentic workloads.

That's not surprising, as the high costs and limited supply of HBM, along with slower access speeds offered by traditional hard disk drives (HDDs), make SSDs ideal for storing large amounts of data that can be accessed quickly with higher power efficiency. Moreover, the rapid jump in SSD demand and the ongoing supply constraints in the industry should continue to boost prices.

Gartner is projecting a 234% increase in NAND flash prices this year. The firm also adds that it isn't expecting any meaningful relief in pricing until late 2027. And now, the agentic AI-driven demand for NAND flash memory is going to be another big catalyst for prices next year. That's going to pave the way for further growth in Sandisk's earnings.

It is worth noting that analysts have already started raising their earnings growth expectations for Sandisk for the next fiscal year (which will begin this month).

Moreover, Sandisk's share of the global NAND flash market suggests that it is on track to witness a phenomenal increase in revenue, which could be enough for the company to achieve a trillion-dollar market cap.

According to Counterpoint Research, Sandisk's share of the NAND flash market stood at 13% in the first quarter of 2026. The company's market share has remained fairly consistent over the past few quarters.

Assuming Sandisk continues to control 13% of the NAND flash market at the end of 2027, and the industry's revenue increases to $379 billion (as per TrendForce), its top line in calendar 2027 could reach $49.3 billion. That points toward a massive increase over Sandisk's trailing-twelve-month revenue of $13.2 billion.

Sandisk has a price-to-sales ratio of 26 as of this writing. That's on the expensive side compared to the U.S. technology sector's average sales multiple of 8. However, investors shouldn't forget that Sandisk is a growth stock, and its top line has accelerated impressively in recent quarters.

The big jump in Sandisk's revenue in 2027 should allow it to sustain its premium valuation. Even if Sandisk trades at just over 20 times sales by the end of next year, it could become a $1 trillion company given that it may generate close to $50 billion in revenue in calendar 2027 (based on the estimate calculated earlier in this section).

Sandisk currently has a market cap of $295 billion, indicating that it has room to fly significantly higher over the next 18 months. That's why growth-oriented investors can still consider buying Sandisk shares, as it has the potential to jump by more than 3x by the end of 2027.

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Harsh Chauhan has no position in any of the stocks mentioned. The Motley Fool recommends Gartner. The Motley Fool has a disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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