Is This the Cheapest Stock In All the AI Universe?[Stocks](https://moneymorning.com/category/article/stocks/) # Is This the Cheapest Stock In All the AI Universe?  by Rich Duprey  February 23, 2026  Share it: The artificial intelligence boom has inflated valuations across the tech sector, turning market leaders and peripheral players into overpriced darlings. Companies like **Nvidia** ( [NVDA](https://moneymorning.com/stocks/amd/)) and **Advanced Micro Devices** ( [AMD](https://moneymorning.com/stocks/amd/)) command premiums for their pivotal roles in AI hardware, while peripheral players such as **Palantir Technologies** ( [PLTR](https://moneymorning.com/stocks/pltr/)) boast tremendous growth potential but stretch credulity with metrics like 213x trailing earnings, 73x forward estimates, and a whopping 72x sales. Investors rationalize these multiples by pointing to PLTR's data analytics prowess in AI applications, yet the hype often outpaces fundamentals. What if you could buy a stock that was both a high-octane growth engine and a genuine bargain? You can. **SanDisk** ( [SNDK](https://moneymorning.com/stocks/sndk/)) – the memory specialist that's quietly powering the AI data explosion – is the full package. ## The Spinoff That Sparked a Surge SanDisk's journey as an independent entity began with its spinoff from **Western Digital** ( [WDC](https://moneymorning.com/stocks/sndk/)) last year, separating the flash memory business to focus on NAND and solid-state drives. Initially, the market took time to warm up, with shares languishing as investors digested the restructuring. But traction built rapidly as AI-driven demand for high-capacity storage exploded. Over the last six months, SNDK has [surged 1,300%](https://moneymorning.com/2025/12/31/sandisk-led-the-sp-500-in-2025-can-it-repeat-in-2026/), fueled by an insatiable appetite for memory in data centers. Tech giants like **Amazon** ( [AMZN](https://moneymorning.com/stocks/amzn/)), Google, and **Microsoft** ( [MSFT](https://moneymorning.com/stocks/msft/)) are in a frenzy to build out AI infrastructure, where vast datasets require robust, fast storage solutions. This buildout shows no signs of abating, with analysts projecting continued double-digit growth in global data center spending. SNDK's products – high-performance NAND flash – are at the heart of this, enabling efficient data handling for machine learning models and generative AI.  ## Unpacking the Bargain Valuation What truly sets SNDK apart is its dirt-cheap valuation despite blistering growth. Trading at just 7x forward estimates, it's a steal compared to peers. Even more striking is its PEG ratio of a minuscule 0.04x, as it factors in Wall Street's projected earnings growth rate of an eye-bleeding 185% annually over the next five years, driven by AI's memory-intensive needs. Sure, it commands 10x sales, but in the tech universe where multiples often hit 20x or more, this is bargain-basement territory. SNDK is already profitable, though it lacks a traditional P/E ratio since it hasn't yet reported four full quarters of earnings post-spinoff. That said, its latest quarter showed earnings skyrocketing 408% year-over-year, underscoring operational strength and market dominance in [memory tech](https://moneymorning.com/2025/12/15/seagate-technology-just-got-added-to-the-nasdaq-100-time-to-buy/). ## Bottom Line SNDK has it all: a highly in-demand product lineup essential for AI's data-hungry ecosystem, surging sales from the ongoing data center boom, skyrocketing earnings that validate its growth narrative, and a valuation that's remarkably cheap even after recent stock gains. In an AI landscape riddled with overvaluation, SNDK offers investors a rare combination of upside potential and downside protection – making it a compelling pick for those seeking value in the hype. **Beat the market, without relying on brokers or biased institutions.** Email(Required) Name This field is for validation purposes and should be left unchanged. Subscribe By submitting your email address, you will receive a free subscription to _Money Morning!_ and occasional special offers from us and our affiliates. 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