Better Buy: Sandisk or Nvidia Stock?

Better Buy: Sandisk or Nvidia Stock?

By Keithen Drury, The Motley Fool
Publication Date: 2026-06-08 01:32:00

Nvidia (NASDAQ: NVDA) has become a staple investment amid the artificial intelligence (AI) build-out. Its returns have made many investors richer, and the company’s future still looks bright. However, now and again, a shiny new toy comes along that makes investors look away, and recently, that has been Sandisk (NASDAQ: SNDK). The memory-chip maker has delivered unbelievably high returns in a short time frame, rising 4,500% in the past year. That’s about the same total return that Nvidia has provided since 2020.

The question is, has Sandisk been a flash in the pan, or is it a real, long-term alternative to investing in Nvidia?

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Image source: Getty Images.

Nvidia’s business is more stable

Nvidia makes graphics processing units (GPUs), which have been widely deployed throughout the AI build-out. GPUs are highly flexible parallel processors, capable of efficiently handling workloads that involve massive amounts of data, and that makes them fantastic for training and running AI models. Nvidia’s position at the top of the AI accelerator food chain has transformed it into the world’s largest company, and there are few signs that its dominance will fade.

Sandisk makes NAND…