Sandisk Corporation (NASDAQ:SNDK) was among Jim Cramer’s stock calls as he suggested that many red-hot stocks can keep making investors money. Starting his list of stocks that have had recent significant rallies that he missed out on, Cramer mentioned the company and said:
I’m going to talk about 16 [stocks] that I was unable to land, couldn’t bring them in… They are so far away from where I first wanted to buy them that I just have to say I’m late, forget about them. Except that time after time it would’ve worked if I hadn’t forgotten about them, if I just bought them today or yesterday, the day before, a week before, a month before, whatever. Which are the tantalizing stocks that have just driven me to ruin? Let’s start with memory and storage, yeah, the devices that hold the data. You ready? You can write them down, but they’re so hot they’ll burn the paper. Seagate, Sandisk, Western Digital, and Micron. I liked all these…
Listen to me. These stocks are being driven up by desperate buyers with persistent orders that take them higher every day. And now I’m going to tell you how it works. Let’s say you want some Sandisk, okay, so do many other people. With the stock at, say $957, you go in, and you place an order like this $957, right? Sandisk, buy me 100,000 with a $1,000 top. A half dozen buyers are actually putting in that same order at the same time you are, literally. And that’s why the stock could rally 8.4% today, up 75 bucks.
These orders are often put in before the market opens. It’s like a train, and they don’t want to miss it. These orders and people don’t have any quit, and that’s how a stock goes up dramatically. Multiple buyers with high tops just buying and buying. Why do these memory stocks work? Simple, shortages. AI needs a huge amount of memory. Nobody in this industry was ready for that level of demand. It’ll take them years to build out enough production capacity to meet the demand.
Stock market charts. Photo by Kaboompics.com on Pexels
Sandisk Corporation (NASDAQ:SNDK) sells NAND flash-based storage solutions, including solid-state drives, embedded storage, removable cards, and USB drives.
While we acknowledge the potential of SNDK as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
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