Should You Invest in SanDisk Corp. (SNDK)?

Parnassus Investments, an investment management company, released the “Parnassus Mid Cap Growth Fund” first quarter 2025 investor letter. A copy of the letter can be downloaded here. The Russell Midcap Growth Index fell 7.12% in the first quarter, starting with a continuation of the late 2024 rally but later experiencing a sharp decline. The Fund (Investor Shares) fell -9.98% (net of fees) in the quarter, compared to the Russell Midcap Growth Index’s -7.12% fall. Stock selection in Consumer Discretionary and Industrials contributed to the relative performance, while Communication Services and Health Care detracted. In addition, please check the fund’s top five holdings to know its best picks in 2025.

In its first-quarter 2025 investor letter, Parnassus Mid Cap Growth Fund highlighted stocks such as Sandisk Corporation (NASDAQ:SNDK). Sandisk Corporation (NASDAQ:SNDK) is a data storage devices and solutions company using NAND flash technology. The one-month return of Sandisk Corporation (NASDAQ:SNDK) was 18.63%, and its shares gained 21.30% of their value over the last three months. On July 3, 2025, Sandisk Corporation (NASDAQ:SNDK) stock closed at $46.41 per share, with a market capitalization of $6.743 billion.

Parnassus Mid Cap Growth Fund stated the following regarding Sandisk Corporation (NASDAQ:SNDK) in its Q1 2025 investor letter:

Sandisk Corporation (NASDAQ:SNDK) is a global leader in data storage solutions using flash memory technology. The company was spun off from our holding in Western Digital Corp. We believe that SanDisk can benefit cyclically from anticipated increases in NAND memory demand and secularly from demand for AI data centers.”

Is Western Digital Corporation (WDC) The Best Hardware Stock To Buy Now?

A data center filled with racks of hard disk drives and solid state drives.

Sandisk Corporation (NASDAQ:SNDK) is not on our list of 30 Most Popular Stocks Among Hedge Funds. As per our database, 44 hedge fund portfolios held Sandisk Corporation (NASDAQ:SNDK) at the end of the first quarter, which was 0 in the previous quarter. While we acknowledge the potential of Sandisk Corporation (NASDAQ:SNDK) as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is as promising as NVIDIA but that trades at less than 5 times its earnings, check out our report about the undervalued AI stock set for massive gains.

In another article, we covered Sandisk Corporation (NASDAQ:SNDK) and shared new stock picks of billionaires Dan Loeb, Jim Simons and others. In addition, please check out our hedge fund investor letters Q1 2025 page for more investor letters from hedge funds and other leading investors. While we acknowledge the potential of SNDK as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money.

Disclosure: None. This article is originally published at Insider Monkey.