The corporate you could know for making digicam reminiscence playing cards and flash drives is surging — and due to merchandise which can be key to the factitious intelligence buildout. Sandisk ‘s flash reminiscence {hardware} presents knowledge storage that is an more and more common alternative for AI firms seeking to broaden knowledge heart infrastructure. After the inventory’s monster rally, the query is whether or not there’s extra room to run. Shares have soared greater than 860% since Sandisk was spun out from Western Digital in February. The inventory is down barely in Wednesday buying and selling after surging greater than 27% a day prior, which marked its second-best session on report. Shares completed Tuesday’s session at a report closing excessive and are already up greater than 46% in 2026. “That is unprecedented,” mentioned Benchmark analyst Mark Miller. “It’s an unparalleled occasion.” SNDK ALL mountain Sandisk inventory Buyers have poured {dollars} into Sandisk because the outlook for the AI storage sector has turn into progressively vibrant, Miller mentioned. He pointed to studies that Samsung and SK Hynix are sharply elevating server costs tied to dynamic random-access reminiscence, or DRAM, and Micron ‘s robust steering for gross margins within the present quarter as as two drivers for this pleasure. Broadly talking, he additionally famous that spending on AI knowledge center-related initiatives is slated to develop 15% from 2025 to 2026, which bodes effectively for names like Sandisk. However Wall Road is not solely on the identical web page. Whereas the typical analyst polled by LSEG has a purchase ranking, the standard worth goal suggests shares can pull again roughly 20%. Miller mentioned it may be robust for giant cash to set a valuation on the inventory given the fast-evolving development story. The analyst mentioned non-GAAP 2027 earnings consensus estimates for Sandisk and friends might be round 50% too low given anticipated demand. He mentioned this group ought to see “huge” free money flows over at the least the subsequent 12 months. “It is up quite a bit, however the numbers are simply going via the roof,” Miller mentioned. Nvidia CEO Jensen Huang’s feedback on the Client Electronics Present in Las Vegas this week about utilizing a devoted storage tier is constructive indicator for Sandisk’s NAND know-how, based on Financial institution of America analyst Wamsi Mohan. The analyst on Tuesday hiked his worth goal to a Wall Road-high of $390, which suggests shares can rise one other 11.5%. “This elevates NAND to a extra distinguished tier in AI workloads/efficiency and permits for vital efficiency enhancements,” Mohan wrote to shoppers in a be aware reiterating his purchase ranking. Sandisk ought to develop according to trade demand in a spread of between the mid-teens and low-20s for the 2026 calendar 12 months, Mohan predicted. He additionally shared estimates for a quarter-over-quarter pricing enhance on NAND of between 20% and 30% for the fourth quarter, adopted by one other hike within the subsequent three-month interval. Mohan described demand as “robust” and NAND pricing “sturdy.” However he mentioned the corporate has a roadblock that may cap upside: capability is “constrained.”
