Key Points

Sandisk and Micron are thriving amid a memory chip shortage.
Nvidia is trading at an unusually low forward P/E valuation.
10 stocks we like better than Sandisk

Sandisk (NASDAQ: SNDK) ranks as the S&P 500's (SNPINDEX: ^GSPC) top performer this year. Shares have climbed 580%, far ahead of the next closest gainers that rose just over 200%. Following such a surge, many might conclude the opportunity with Sandisk has passed.

Yet investors seeking attractive chip stocks for the ongoing AI expansion may still find value in several names. These include Micron Technology (NASDAQ: MU) and Nvidia (NASDAQ: NVDA). Interestingly, Sandisk itself also appears compelling at current levels.

Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue

In my assessment, the market currently undervalues all three of these technology firms.

Image source: Getty Images.

Sandisk and Micron

A sharp prior advance does not preclude further upside. Both Micron and Sandisk illustrate this point. Each has delivered strong results through 2026, yet I believe more room remains. Solid business trends at both firms provide the foundation for additional gains ahead.

Micron and Sandisk focus on memory chips for computing needs: Micron supplies NAND and DRAM, while Sandisk concentrates on NAND. NAND supports long-term storage such as solid-state drives, whereas DRAM delivers fast-access memory typically paired with processors. Both varieties play essential roles in data centers. As data-center expansion accelerates, Sandisk and Micron are positioned to gain.

Industry-wide production capacity falls short of current demand, driving memory prices sharply higher. New fabrication facilities require years to complete, so relief will not arrive quickly. Micron leadership projects tight market conditions extending past 2027. This outlook supports both stocks for at least the next 18 months. Their modest forward price-to-earnings ratios further enhance their appeal today.

SNDK PE Ratio (Forward) data by YCharts.

Although Micron and Sandisk sit well below prior peaks, the memory shortage shows no sign of easing soon. This environment should sustain their growth trajectories and reward shareholders over time.

Nvidia

Nvidia remains a leading choice for AI-related investment, even as its share price has lagged somewhat in 2026. Business momentum stays robust. Revenue rose 85% in the most recent quarter, and analysts project nearly 100% growth next quarter. These figures stand out for the world's largest company by market value. With AI data-center spending set to increase further next year, Nvidia holds a strong position to capture global demand.

Given Nvidia's history and growth profile, investors might anticipate a forward multiple of 30 to 40 times earnings, consistent with recent trading ranges. Instead, the stock currently changes hands at 23.7 times forward earnings.

NVDA PE Ratio (Forward) data by YCharts.

This valuation assigns little credit to anticipated 2027 results, even though analysts forecast 42% revenue expansion that year. The disconnect creates an attractive entry point before broader recognition occurs. I expect the shares could advance later this year once hyperscale operators disclose their 2027 spending plans.

Should you buy stock in Sandisk right now?

Before purchasing Sandisk shares, review this perspective:

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*Stock Advisor returns as of July 18, 2026.

Keithen Drury holds shares of Nvidia. The Motley Fool owns stakes in and recommends Micron Technology and Nvidia. The Motley Fool maintains a disclosure policy.

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