SanDisk (SNDK), pressured 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 has risen by approximately 10% this year, but individual stock performance within the index varied dramatically. SanDisk surged by about 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 expanding 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 exploded, but supply couldn't keep up, leading to soaring prices, and SanDisk's stock benefited most from this trend.

The industry anticipates that the memory semiconductor shortage will not easily be resolved in 2026, nor even in 2027. For this reason, even if SanDisk has already seen a significant rise in the first half, there is still room for it to maintain a top-tier performance until the end of the year. However, the article's author named Nvidia, not SanDisk, as the strongest candidate for a turnaround in the second half.

Nvidia's stock price has only risen by 5% this year. However, the article's 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 ratio is 21.5x, on par with the S&P 500 index, and it is trading at 15x based on next year's estimated earnings.

The article's author projected that if Nvidia recovers a forward P/E ratio of over 40x by year-end, as it did in the past two years, its stock price could rise by nearly 100%. Even if Nvidia doesn't become the top-performing stock in the S&P 500 index in the second half, there's a high probability of it achieving top-tier performance. If SanDisk's 800% surge rocked the market in the first half, the debate over Nvidia's undervaluation and expectations for renewed acceleration in AI investment are now drawing investors' attention in the second half.

[Article Key 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 into 2026 and 2027, cited as a key reason for SanDisk's strong performance.

-Nvidia's gains were limited to 5% this year, but it has been suggested as a candidate for a turnaround in the second half, based on expanded AI investment and lower valuation.

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