Parnassus Investments, an investment management company, released the "Parnassus Growth Equity Fund" second-quarter 2026 investor letter. The letter can be downloaded here. During the quarter, the Fund (Investor Shares) returned 17.49% (net of fees), outperforming the Russell 1000 Growth Index's 16.74%. Holdings in Information Technology and Consumer Discretionary sectors boosted relative returns, while Communication Services and Financials holdings detracted. For the year-to-date period, the Fund returned 6.17% (net of fees), outperforming the Russell 1000 Growth's 5.33%. The firm remains constructively bullish on U.S. equities and continues to be selective, valuation-sensitive, and focused on disruptive growth opportunities through active stock selection. Growth stocks advanced during the second quarter, as the Russell 1000 Growth Index generated strong double-digit returns driven by increased confidence in the durability of the ongoing artificial intelligence (AI) infrastructure build-out. Additionally, reviewing the Fund's top five holdings could help identify its best picks for 2026.
In its second-quarter 2026 investor letter, Parnassus Growth Equity Fund highlighted Sandisk Corporation (NASDAQ:SNDK) as a newly added position. Sandisk Corporation (NASDAQ:SNDK) develops, manufactures, and sells data storage devices and solutions using NAND flash technology in the United States and internationally. On September 15, 2026, Sandisk Corporation (NASDAQ:SNDK) closed at $1,530.90 per share. Over the past month, Sandisk Corporation (NASDAQ:SNDK) declined 2.32%, but its shares are up 1,530.74% over the past year. Sandisk Corporation (NASDAQ:SNDK) has a market capitalization of $224.15 billion, and its stock has traded within a 52-week range of $90.22 to $2,354.39.
Parnassus Growth Equity Fund stated the following regarding Sandisk Corporation (NASDAQ:SNDK) in its Q2 2026 investor letter:
"Other positions added during the quarter included Sandisk Corporation (NASDAQ:SNDK), a leader in flash memory solutions; Comfort Systems, a mechanical, electrical and plumbing contractor. Sandisk makes NAND flash memory, which is seeing a surge in demand from data centers and AI workloads. While NAND remains cyclical, we believe the combination of accelerating AI-driven storage demand and constrained supply provides an attractive opportunity to participate in the current upcycle."
Sandisk Corporation (NASDAQ:SNDK) is on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 128 hedge fund portfolios held Sandisk Corporation (NASDAQ:SNDK) at the end of the second quarter which was 114 in the previous quarter. While we acknowledge the potential of Sandisk Corporation (NASDAQ: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.
In another article, we discussed Sandisk Corporation (NASDAQ:SNDK) and noted that DeepSeek's V4.1-Flash cuts memory needs, raising concerns for Micron and Sandisk. In addition, please check out our hedge fund investor letters Q2 2026 page for more investor letters from hedge funds and other leading investors.
READ NEXT: 33 Stocks That Should Double in 3 Years and 15 Stocks That Will Make You Rich in 10 Years.
This article is originally published at Insider Monkey.
The Role of SanDisk (SNDK) in Advancing AI Memory Solutions Insider Monkey • 1mo ago SNDK
The Role of SanDisk (SNDK) in Advancing AI Memory Solutions
Sandisk Corporation (SNDK) Rose on Stronger Pricing Dynamics Insider Monkey • 1mo ago SNDK
Sandisk Corporation (SNDK) Rose on Stronger Pricing Dynamics
Sandisk Corporation (SNDK) Jumped on Improving Memory Fundamentals Insider Monkey • 2mo ago SNDK MSTR
Sandisk Corporation (SNDK) Jumped on Improving Memory Fundamentals
Sandisk Corporation (SNDK): Renaissance Technologies Trims Stake Insider Monkey • 3mo ago SNDK
Sandisk Corporation (SNDK): Renaissance Technologies Trims Stake
Sandisk Corporation (SNDK): Leopold Aschenbrenner Is Backing This Memory Firm Insider Monkey • 3mo ago SNDK
Sandisk Corporation (SNDK): Leopold Aschenbrenner Is Backing This Memory Firm
The Fund Missed Sandisk Corporation (SNDK) Rally Amid AI Tailwinds Insider Monkey • 1mo ago SNDK
The Fund Missed Sandisk Corporation (SNDK) Rally Amid AI Tailwinds
Sandisk Jumps 12% as AI Storage Trade Keeps Running GuruFocus.com • 9d ago SNDK STX
Sandisk Jumps 12% as AI Storage Trade Keeps Running
Sandisk (SNDK) Loses 7.3% on Profit-Taking Insider Monkey • 2mo ago SNDK
Sandisk (SNDK) Loses 7.3% on Profit-Taking
Why Sandisk Corporation (SNDK) is One of the Top Stock Giants That Were Suddenly On Fire in April Insider Monkey • 4mo ago SNDK
Why Sandisk Corporation (SNDK) is One of the Top Stock Giants That Were Suddenly On Fire in April
Sandisk (SNDK) Skyrockets 287% This Year on NAND Price Jump, Upbeat Outlook Insider Monkey • 4mo ago SNDK
Sandisk (SNDK) Skyrockets 287% This Year on NAND Price Jump, Upbeat Outlook
