NVIDIA Surpasses Sandisk in AI-Driven Growth and Efficiency

The rapid growth in AI and data center demand has been beneficial for both NVIDIA Corporation (NVDA) and Sandisk Corporation (SNDK). However, when it comes to investing in these companies, one stands out as a better buy. Sandisk's revenue reached $8.97 billion in the fiscal fourth quarter of 2026, a staggering 372% year-over-year increase.

The company's Data Center segment has been driving this growth, with revenues jumping 437% due to increased demand for high-value storage related to AI and data centers. As a result, Sandisk's gross margins rose to 84.6%, compared to 26.2% in the previous year.

NVIDIA, on the other hand, has also seen significant growth, with its Data Center segment generating $89 billion in revenue for the fiscal second quarter of 2027. The company's non-GAAP gross margin increased to 75%, a notable improvement from 72.5% in the previous year.

While both companies are experiencing strong growth, NVIDIA appears to be more stable and efficient in converting revenues into profits. With a net profit margin of 63.7%, NVIDIA outperforms Sandisk's 56.5%. As a result, experts consider NVIDIA a better buy than Sandisk at this time.