Sandisk stock became the best-performing technology stock in the Nasdaq-100 by one-year return as of November 2, gaining 466.84%, according to NerdWallet, using Finviz data. Sandisk (NASDAQ: SNDK) is a semiconductor and flash-storage manufacturer, and one of the biggest beneficiaries of the artificial intelligence boom.

Its latest quarterly results show why investors have been enthusiastic. Fiscal first-quarter 2027 revenue reached $11.03 billion, increasing 23% from the preceding quarter and 378% from a year earlier. Revenue from data-center customers increased 61% sequentially to $4.80 billion. The quarter ended October 2, 2026, and results were reported October 29, 2026.

But the midterm elections have introduced another variable: whether new political leadership in Washington and several states will make it more difficult to build additional AI data centers. On November 4, Sandisk shares fell approximately 8%, closing down 7.91%, amid broader selling in semiconductor companies.

Read also: A Pivotal Week for AI Stocks: Hyperscaler Earnings, the Fed and the Midterms — our look at the earnings week behind the latest Sandisk stock move.

By the numbers

One-year stock performance, to Nov. 2	+466.84%
Q1 fiscal 2027 revenue	$11.03 billion
Sequential revenue growth	+23%
Year-over-year revenue growth	+378%
Data-center revenue	$4.80 billion
Data-center sequential growth	+61%
GAAP gross margin	85.0%
Non-GAAP gross margin	85.1%
Consumer revenue, sequential change	-29% to $397 million
Q2 revenue guidance	$12.2–$12.6 billion
Shares, November 4	About -8%

Source: Sandisk’s October 29 earnings announcement and the November 2 technology-stock ranking.

The 85.0% gross margin is extraordinary — up from 29.8% a year earlier — and it should be treated with care. It is what the company reported, and management guided to a non-GAAP gross margin of 84.5% to 85.5% for the next quarter, but investors should wait for the Form 10-Q and further management explanation before treating 85% as a lasting margin. Sandisk also announced an 8-for-1 stock split at the same time: shareholders of record on November 9 receive seven additional shares, with split-adjusted trading beginning November 20.

Investor perspective: What it means for value and risk

Sandisk’s growth is closely connected to demand for storage in AI infrastructure. As companies develop increasingly sophisticated AI models, they require substantial amounts of high-performance storage to manage information, training data and computing workloads. That demand has helped drive Sandisk’s revenue and profitability. The election creates uncertainty because data-center construction has become a political issue in several states. Texas is particularly important. SemiAnalysis puts Texas at close to 30% of U.S. data-center capacity additions expected in 2028; Goldman Sachs estimates about 25% of planned capacity, and Wells Fargo about 27%. New political leaders have discussed stricter construction rules, permitting requirements and restrictions involving electricity and water consumption. In Texas, Democrat Gina Hinojosa defeated Republican Governor Greg Abbott, and has proposed halting new data-center approvals until rules are in place to protect residents from higher electricity and water costs. The bullish case is that demand for memory and storage will remain strong even if new construction slows. Existing projects, continued AI investment and supply constraints could support pricing and profitability. The bearish case is that construction delays could eventually reduce demand for semiconductor components. Sandisk’s recent stock performance also leaves investors exposed to a potentially significant valuation correction.

Customer perspective: What it means for businesses and consumers

The biggest customers affected are cloud-service providers, enterprise technology companies and businesses building data centers. A slowdown in infrastructure development could change procurement schedules and reduce the pace of new storage purchases. For consumers, Sandisk also operates in the SSD, memory card and portable storage markets. However, the election does not immediately change product availability or pricing. Businesses purchasing storage should monitor supply agreements and compare alternative suppliers, especially when making longer-term infrastructure commitments. The company’s latest earnings release emphasizes its strong demand outlook, but it was published before the election and does not address any potential new regulatory restrictions.

Employee perspective: What it means for workers

The technology sector’s growth has created employment opportunities in semiconductor manufacturing, engineering, infrastructure and data-center operations. A slower development pipeline could eventually affect hiring plans at companies involved in building and supplying AI infrastructure. However, there is not yet sufficient publicly verified evidence to suggest that the election has directly caused Sandisk layoffs or changes in employee compensation. The more immediate issue is uncertainty surrounding future capital investment.

The synthesis: Who wins and who bears the cost?

Restrictions on new data-center development could benefit certain established technology companies. Reuters reported on November 4 that Amazon shares surged 7.4% to a three-month high, while Meta, Alphabet and Microsoft gained between 2% and 6.3%, as investors considered whether slower construction might reduce infrastructure oversupply and improve the value of existing data-center assets. The five largest tech companies were on course to add more than $750 billion in combined market value that day. Meanwhile, semiconductor manufacturers and smaller infrastructure developers faced pressure from fears of reduced future demand. The election therefore creates a potential divide between companies that already own substantial computing infrastructure and those whose growth depends on constructing more of it. What to watch next: Texas permitting policy, federal AI regulation, Sandisk’s next earnings report, data-center construction activity and its ability to maintain margins.

Primary sources

• Sandisk Q1 fiscal 2027 results, Oct. 29, 2026: https://www.sandisk.com/company/newsroom/press-releases/2026/2026-10-29-sandisk-reports-fiscal-first-quarter-2027-financial-results
• NerdWallet — Best-performing technology stocks, updated Nov. 2, 2026: https://www.nerdwallet.com/investing/learn/best-performing-technology-stocks
• Reuters — Big Tech rally after the midterms, Nov. 4, 2026: https://www.kitco.com/news/off-the-wire/2026-11-04/democrats-midterm-sweep-fuels-750-billion-big-tech-rally
• Texas data-center capacity: https://www.coindesk.com/markets/2026/11/04/wall-street-cuts-bitcoin-miner-price-targets-after-democrats-texas-win-threatens-ai-data-center-boom

Note: Investment calculations and projections are for illustrative purposes only and do not constitute investment advice. Please do your own research before making any investment decisions.