Missed Out on Sandisk's 580% Rally? Here Are 3 Chip Stocks You Can Buy Now.
2026-07-18 05:10
•Keithen Drury •The Motley Fool
••••• ••• Axe Capital view
Chip Stocks: Is It Too Late to Ride the Wave?
After Sandisk’s explosive gains, consider local angles on the global chip shortage story.
Sandisk's 580% run feels like ancient history now, but the memory chip shortage underpinning it isn’t going away soon. Globally, players like Micron and Nvidia remain interesting, especially Nvidia’s rare valuation generosity despite strong growth. Locally, the JSE has no pure-play semiconductor companies, so USD/ZAR is your best proxy for how global tech shifts impact SA. A weaker rand would make imported tech costlier, squeezing local businesses and consumers alike. But it also boosts exporters like Naspers and Prosus, who gain from tech surges overseas. Given the Rand's tendency to weaken on risk-off sentiment, cautious locals should watch these counters, not chase pure chip exposure. If Nvidia continues its AI-driven ramp and memory shortages persist, it could push USD/ZAR higher, making rand-based investments more volatile. Still, global tech uncertainty or a sudden surge in chip supply could derail this narrative. this is just my opinion and not financial advice
I would hold Naspers and Prosus to ride the indirect tech growth linked to global chips, and watch USD/ZAR for cost pressures in SA. Avoid direct chip stocks since we have none domestically, and trim more cyclical South African shares sensitive to import costs like retail or manufacturing.
- Naspers
- Prosus
- USD/ZAR
- Global chip supply normalizing faster than expected
- Sudden rand strength dampening export earnings
6/10
Despite Sandisk's 580% rally in 2026, analyst recommends three chip stocks as smart buys: Sandisk, Micron Technology, and Nvidia. The memory chip shortage is expected to persist beyond 2027, benefiting memory producers. Nvidia trades at an unusually low 23.7x forward P/E ratio despite 85% revenue growth and expected 42% growth in 2027, presenting a potential undervaluation opportunity.
This article was originally published by The Motley Fool and has been adapted here for Axe Capital Trading News.
Publisher: The Motley Fool
Author: Keithen Drury
Categories: Equities, Earnings, Technology, AI, Semiconductors
Tickers: SNDK, MU, NVDA
Sentiment: Positive - Despite massive 580% rally, analyst believes stock can continue higher due to strong business outlook, persistent memory chip shortage extending beyond 2027, and cheap P/E valuation. Supply constraints will support extended growth. Stellar performer in 2026 with strong business outlook. Benefits from memory chip shortage expected to persist beyond 2027. Produces critical NAND and DRAM memory for data centers with cheap valuation metrics.
Keywords: chip stocks, memory shortage, AI data centers, semiconductor industry, NAND memory, DRAM memory, valuation, revenue growth
Insights:
- SNDK: Positive: Despite massive 580% rally, analyst believes stock can continue higher due to strong business outlook, persistent memory chip shortage extending beyond 2027, and cheap P/E valuation. Supply constraints will support extended growth.
- MU: Positive: Stellar performer in 2026 with strong business outlook. Benefits from memory chip shortage expected to persist beyond 2027. Produces critical NAND and DRAM memory for data centers with cheap valuation metrics.
- NVDA: Positive: Trading at 23.7x forward P/E, below historical 30-40x range despite 85% revenue growth last quarter and expected 42% growth in 2027. Positioned to benefit from AI data center build-out expansion. Undervalued relative to growth prospects.