Is Sandisk a Millionaire-Maker Stock?

For investors, generative AI is a gift that keeps on giving. But while popular chipmakers like Nvidia and led the infrastructure opportunity over the last few years, computer memory specialists like Sandisk (NASDAQ: SNDK) have convincingly stolen the show.

The company's shares have soared by a blistering 4,000% in just 12 months -- enough to turn a $25,000 position into well over a million. This trend is driven by soaring demand for its hardware to help power data centers. Let's dig deeper to decide if the company is still capable of generating life-changing returns, or if it's a giant bubble ready to pop.

When OpenAI's ChatGPT hit the scene in late 2022, tech companies quickly realized that they would have to buy more and better graphics processing units (GPUs) to keep up. These chips are ideal for running and training large language models (LLMs) because of parallel computing -- the ability to process multiple calculations simultaneously.

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Source Fool.com