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SNDK: A Picks-and-Shovels Play on AI

Strong datacenter growth, expanding margins, and a valuation disconnect

Author

George Babis
February 04, 2026

AI isn’t just a chip story. It’s a systems story. And one of the most overlooked layers in the stack is storage—fast, reliable flash that keeps models fed with data and keeps inference responsive at scale. That’s the setup behind SanDisk $SNDK ( â–Ľ 10.37% )  after its 2025 spin-off: a legacy name in NAND that’s effectively been reborn as a standalone, AI-infrastructure-first business.

SanDisk benefits from the “AI Data Cycle.” Compute creates demand for more data, more data creates demand for more storage, and the winners are the companies sitting in the loop—supplying the infrastructure that has to scale every step of the way.

SNDK is a picks-and-shovels way to play the AI buildout, and the real gains in this cycle will come from companies building the plumbing, not just the processors.

$SNDK massive run-up over the past twelve months

As you can see above, SanDisk stock has soared since going public about a year ago. However, this rally is quite misleading, as the huge growth momentum has left the stock at its lowest PE ratio in recent months. Let’s see why SanDisk is still one of the best AI infrastructure stocks to own amid the challenging market conditions.

Writing The Latte from a coffee shop in Athens

To all new readers of The Latte who may be wondering who’s behind this newsletter, let me introduce myself.

I’m George Babis, a digital entrepreneur and investor. I’ve built three 100% self-funded companies in my early and mid-twenties, but my biggest passion isn’t really managing people or operations — it’s investing. That’s why I enjoy writing The Latte and running our exclusive Investment Club.

Personal portfolio performance since late 2022

Since October 2022, my personal portfolio has grown nearly 300%, driven by identifying high-conviction growth opportunities and avoiding overhyped investments. I share all my trades and portfolio holdings with members of our Investment Club.

If you’d like to follow along and learn how we approach the market, you’re welcome to join our Club here.

Thank you for reading, I truly appreciate it.

— George

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