Sandisk Stock Is Up 1,000% in 6 Months. Analysts Think It Can Gain Another 20% from Here.

A stock that just doubled in a month is life-changing for existing investors, attractive for onlookers, and scary for those looking to get in at current prices. Sandisk (SNDK) is one such stock, up almost 100% in just a month and up roughly 1,000% in six months. The company is known for its various memory devices, and the reason for SNDK stock's surge is the ongoing demand for and shortage of memory products in the market.

There are multiple ways to look at the question of buying SNDK stock now. But one reason why the rally could be expected to continue is the way the industry reacts to such demand. Right now, the memory industry is facing extremely high demand. Usually, any industry would scramble to increase its production capacity to protect its market share. However, chipmaking isn’t just another business. It requires manufacturing at a high level of precision and technologies that not every company can acquire, certainly not a fresh entrant. Moreover, slight changes in global supply and demand can have a huge impact on memory chip prices.