Sandisk (SNDK) raised value targets to $1,250 (Bernstein) and $1,000 (Cantor Fitzgerald) on stronger-than-expected NAND flash pricing; Q2 income surged 61% 12 months over 12 months to $3.03B with data-center income leaping 76% and gross margins increasing towards 50%. Micron Technologies (MU) posted Q1 DRAM income of $10.8B, up 69% 12 months over 12 months, however its diversified portfolio limits direct leverage to NAND value spikes versus SanDisk’s pure-play focus.
AI information middle demand is accelerating NAND common promoting costs quicker than anticipated, giving SanDisk direct earnings leverage as a specialised storage participant whereas broader reminiscence producers like Micron face diluted publicity.
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AI information facilities maintain devouring storage at file clips, and reminiscence chip demand exhibits no indicators of slowing. NAND flash costs, particularly, maintain stunning to the upside. That is what simply pushed Sandisk (NASDAQ:SNDK) to a contemporary all-time excessive. But does the rally have legs?
Two prime analysts simply raised value targets on stronger-than-expected reminiscence pricing, and the numbers recommend sure — offered the cycle holds. Let’s break it down.
Bernstein analyst Mark Newman delivered the Street-high name yesterday. He hiked his value goal on Sandisk to $1,250 from $1,000 per share and stored an Outperform ranking. The transfer implies roughly 47% upside from the inventory’s April 8 shut of $780.90. Newman’s base case applies an 11-times a number of to common non-GAAP earnings of $114 per share throughout fiscal 2026 via 2029. For fiscal 2027 alone, he now sees $144 per share. In a bull case — factoring sustained greater pricing — he fashions $224 per share in earnings and sketches a blue-sky situation north of $3,000.
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Cantor Fitzgerald analyst C.J. Muse adopted swimsuit the identical day. He raised his goal to $1,000 from $800 whereas sustaining an Overweight ranking. That nonetheless factors to twenty-eight% upside from Wednesday’s stage. Both corporations cited the identical catalyst: NAND common promoting costs proceed to speed up quicker than anticipated, in line with Bernstein’s March reminiscence tracker.
The inventory responded in form. Sandisk shares closed yesterday at $851.57, up 9% on quantity of 19.8 million shares — greater than double the 30-day common. That extends a 2,228% achieve over the previous 12 months.
Sandisk operates as a centered NAND specialist, in contrast to diversified friends. Consider Micron Technologies (NASDAQ:MU), which mixes DRAM, NAND, and high-bandwidth reminiscence. Micron posted file fiscal Q1 DRAM income of $10.8 billion, up 69% 12 months over 12 months, and NAND income of $2.7 billion, up 22%. Solid, but Sandisk’s narrower focus lets it seize NAND value spikes extra instantly.
