Even with Stock Soaring Over 700%, 'Not Recommended'...Experts Recommend 'Dell (DELL)' Instead of Sandisk (SNDA)

▲ SanDisk (SNDK), Dell (DELL), Artificial Intelligence (AI)/AI-generated image

Amidst the artificial intelligence infrastructure investment frenzy, SanDisk Corporation (SNDK) has dominated the market with its stock price surge, but Zacks has identified Dell Technologies (DELL) as a better buy candidate.

According to Zacks on June 25 (local time), SanDisk and Dell are considered direct beneficiaries of the expanding demand for artificial intelligence (AI) infrastructure. Both stocks received Zacks' #1 Strong Buy rating, but the original article gave higher marks to Dell's record-breaking AI order backlog, lower valuation, and broad enterprise customer base.

SanDisk surged on the back of increasing demand for NAND and enterprise solid-state drives (SSDs). As AI workloads drive demand for data center storage capacity, SanDisk has emerged as a pure-play memory infrastructure investment. Its stock price has risen 706.5% since the beginning of the year, significantly outpacing Dell's 244.8% gain over the same period.

However, Dell showed an advantage in valuation. SanDisk's forward 12-month price-to-sales ratio was 6.25x, significantly higher than Dell's 1.63x. The original article noted that SanDisk's premium reflects strong growth expectations, but Dell, with its broader enterprise infrastructure business, trades at a relatively lower price.

Dell's core competitive strength lies in its business structure, which extends across AI servers and overall data center infrastructure. Dell's AI order backlog reached a record $51.3 billion. This increase in Dell's order base is attributed to customers' efforts to secure long-term infrastructure supplies amid memory chip supply bottlenecks.

The media concluded that while SanDisk delivered overwhelming stock performance, Dell is a more balanced AI infrastructure investment. Dell was evaluated as a stock with a low forward valuation, a large order backlog, and a comprehensive network of servers, storage, and enterprise customers.

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