Sandisk shares surge 780% year-to-date, surpassing Micron’s 300% rise amid memory market supply shortages.
Sandisk (SNDK) has delivered a 780% return in 2024, outpacing Micron Technology’s (MU) 300% gain and making it the top performer in the S&P 500. Both companies operate in the memory market, benefiting from ongoing supply constraints driving demand for semiconductor stocks.
Micron’s market capitalization stands near $1.2 trillion, significantly higher than Sandisk’s $300 billion. Despite Sandisk’s stronger price performance, Micron trades at a forward P/E of 7, while Sandisk’s multiple is 32, compared to the S&P 500’s average of 21.
Investors are weighing whether Sandisk’s valuation leaves room for further upside, given its smaller market cap and higher earnings multiple. The stock’s rally has defied traditional valuation metrics, raising questions about sustainability.