SanDisk (SNDK), pushed aside by Nvidia (NVDA) aiming for a 100% rally in the second half?

▲ SanDisk (SNDK), Nvidia (NVDA)/AI generated image

While SanDisk (SNDK) surged to become the top-performing stock in the S&P 500 Index in the first half of this year, a forecast suggests that leadership in the second half could shift to NVIDIA (NVDA).

According to Nasdaq on July 3 (local time), the S&P 500 Index rose by about 10% this year, but individual stock performance within the index varied dramatically. SanDisk surged by approximately 800%, recording the highest return within the S&P 500 Index, while Intuit (INTU) fell by about 60%, showing the worst performance.

The surge in SanDisk's stock is attributed to increased investment in artificial intelligence (AI) data centers and a shortage of memory semiconductors. Nasdaq pointed out that the biggest bottleneck in the current data center market is not energy, land, or labor, but memory semiconductors. Demand has exploded, but supply has not kept up, leading to soaring prices, and SanDisk's stock has benefited most from this trend.

The industry expects the memory semiconductor shortage not to be easily resolved in 2026, or even 2027. For this reason, even if SanDisk has already risen significantly in the first half, there is still room for it to maintain its top performance until the end of the year. However, the article's author named Nvidia, not SanDisk, as the strongest turnaround candidate for the second half.

Nvidia's stock price increase this year has been limited to 5%. However, the author believes that AI infrastructure investment will continue into the second half of 2026 and beyond 2027, and that the market has not yet fully reflected this growth outlook in the stock price. Nvidia's 12-month forward price-to-earnings (P/E) ratio is 21.5x, on par with the S&P 500 Index, and is trading at 15x based on next year's expected earnings.

The author predicts that if Nvidia recovers a forward P/E ratio of over 40x by the end of the year, as it did in the past two years, its stock price could rise by nearly 100%. Even if Nvidia does not become the top-performing stock in the S&P 500 Index in the second half, it is highly likely to achieve a strong performance. If SanDisk's 800% surge shook the market in the first half, in the second half, the debate over Nvidia's undervaluation and expectations for accelerated AI investment are once again attracting investors' attention.

[Article Summary]

-SanDisk surged by approximately 800% in the first half of this year, becoming the top-performing stock in the S&P 500 Index.

-The memory semiconductor shortage is expected to continue in 2026 and 2027, cited as a key reason for SanDisk's strong performance.

-Nvidia's stock only rose by 5% this year but was presented as a turnaround candidate for the second half, based on expanding AI investment and a lower valuation.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*