Shares of Sandisk Corporation (SNDK) have been flying high as investors pile into semiconductor names and memory-related stocks.
The stock has surged nearly 100% over the past month and closed at $1,409.98 on May 6, extending a massive rally that has pushed shares up nearly 500% year to date, according to Yahoo Finance data.
The rally comes as Wall Street enthusiasm around AI infrastructure spending continues to fuel demand for high-performance storage and memory products tied to hyperscalers, cloud providers, and data centers.
Options traders have also aggressively chased semiconductor stocks higher, CNBC reported. In recent sessions, call buying activity across memory-related names like Intel (INTC) and Micron (MU) intensified as investors looked for further upside in companies tied to the AI trade.
Wall Street is rethinking Sandisk stock target after its massive rally. Here’s why.
Sandisk posts massive earnings beat
Sandisk reported fiscal third-quarter 2026 results on April 30 that easily topped Wall Street expectations.
Revenue came in at $5.95 billion, up 97% sequentially and 251% from a year earlier. The company reported GAAP net income of $3.62 billion, or $23.03 per diluted share, while non-GAAP diluted net income per share reached $23.41.
The company’s sales growth of 252% beat analyst expectations by more than $1.2 billion, while adjusted earnings per share topped estimates by nearly $9.
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Sandisk said the revenue outperformance was driven by stronger pricing and a shift toward higher value customers, particularly in the data center market. Datacenter revenue jumped 233% sequentially and 645% year over year to $1.47 billion.
The company also issued strong guidance for the current quarter. Sandisk expects fourth-quarter revenue between $7.75 billion and $8.25 billion, far above Wall Street expectations of roughly $6.65 billion.
“This quarter marks a fundamental inflection point for Sandisk — where our technology leadership is enabling a deliberate shift in our mix toward the highest value end markets, led by Datacenter,” said Sandisk CEO David Goeckeler.
“With a zero debt balance sheet, strong cash generation, and a recently authorized share repurchase program, we are positioned to deliver substantial long term value creation for our shareholders,” he added.
Investors also reacted positively to the company’s improving profitability. Gross margin reached 78.4% during the quarter, well above analyst expectations, as pricing remained strong across nearly all product categories.
The company also said it expects to begin shipping QLC Stargate solutions during the current quarter, adding another potential growth driver tied to AI and enterprise demand.
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Analysts raise Sandisk stock price targets
Bernstein has raised its stock price target for Sandisk to $1,700 from $1,250 and reiterated an outperform rating, The Fly reported on May 6.
The firm notes Sandisk reported a strong beat and guide. Based on the results, the company commentary and the “very strong pricing environment,” Bernstein is increasing its estimates substantially, mainly due to stronger pricing in the short-term.
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Bank of America analyst Wamsi Mohan also raised his price target on Sandisk to $1,550 from $1,080 while reiterating a buy rating, according to a recent research note sent to TheStreet.
Mohan said strong demand continues to outpace supply, while new business models signed by the company could help reduce some of the storage industry’s historic cyclicality.
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The analyst highlighted that Sandisk signed three multi-year deals during the quarter and two additional deals early in the fourth quarter. According to the research note, the agreements could generate at least $42 billion in contractual revenue, with guaranteed termination payments totaling $11 billion if customers back out of commitments.
“This dynamic offers some protection to SNDK in case of a downcycle where customers could choose to back out of capacity commitments,” the analyst noted.
Bank of America also pointed to strong growth across multiple end markets. The firm said Sandisk continues to see strong demand from hyperscalers, neocloud providers, and OEM customers.
Mohan also raised fiscal 2026 revenue and earnings estimates, citing higher margins and profitability.
“We model margins to step up further in fiscal fourth quarter and remain 80%+ throughout fiscal 2027,” the analyst wrote. “In fiscal fourth quarter, Sandisk expects to start shipping QLC Stargate solutions, adding another vector of rev growth.”
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