By MATT KRANTZ

Missed Sandisk's (SNDK) giant 560% gain last year — putting it at top of the year's IBD rankings? Looks like you've got another shot at the S&P 500 stock in 2026.

Shares of the computer memory firm are up more than 47% just in the first few days of trading in 2026. Investors are scrambling to own the stock amid reports of memory chip shortages need to train AI models.

The gain in 2026 so far is staggering given its rise last year and relative to other AI stocks. Shares of Nvidia (NVDA), the king of AI chips, is only up less than 1% this year.

Sizing Up Sandisk's Shares

Shares of Sandisk carry a perfect RS Rating of 99, showing they're topping 99% of all other stocks. And it's not just speculation. Analysts think earnings will boom 325% this year and 69% in 2027.

The whole industry is getting a lift. Micron (MU), which makes another type of computer memory used to train AI models, has seen shares jump 20% this year. It too sports an RS Rating of 99.

"This is an industry oligopoly — Micron and two South Korean players control roughly 90% of the market — and they're acting rationally when it comes to adding capacity," said Paul Meeks, managing director and head of technology research at Freedom Capital Markets.

AI Boom Continues, But It's Different

This year so far, investors seem more keen on the S&P 500 tech companies that make the bits and pieces the giant hyperscalers are buying than the hyperscalers themselves. Computer memory and storage is at the forefront of the trend.

Computer storage firm Western Digital has seen shares rise 27.7% this year. Its hard disk drives are used to store AI data. Like the rest, Western Digital has an RS Rating of 99.

And the trend is in place for chips used in AI to spark stock gains. Nine of the top 10 S&P 500 are all in the information technology sector — with a bulk of those in memory and storage.

Looks like AI investing is still alive and well.

Top S&P 500 Stocks This Year

As of Jan. 6, 2026

Source: S&P Global Market Intelligence

YOU MAY ALSO LIKE:

Catch The Next Big Winning Stock With MarketSurge

Want To Get Quick Profits And Avoid Big Losses? Try SwingTrader

IBD Digital: Unlock IBD's Premium Stock Lists, Tools And Analysis Today

How To Invest: Rules For When To Buy And Sell Stocks In Bull And Bear Markets

This article was first published on Investor's Business Daily