TLDR
- Sandisk (SNDK) stock has climbed 166% in 2026 on surging AI data center flash memory demand
- Second-quarter fiscal 2026 revenue increased 61% to $3 billion with earnings up over 500%
- NAND flash shortage enables Sandisk to reportedly double enterprise solid-state drive prices
- Earnings are expected to jump from $2.99 per share in fiscal 2025 to $39.45 in fiscal 2026
- High-bandwidth memory market forecast to grow from $35 billion in 2025 to $100 billion by 2028
Sandisk stock has emerged as a standout performer in 2026 with year-to-date gains of 166%. The flash memory specialist benefits from explosive AI infrastructure growth that’s creating unprecedented storage demand.
The company’s business transformation mirrors patterns seen during Nvidia’s early AI acceleration. Sandisk once dominated consumer flash storage but has successfully transitioned to enterprise solid-state drives and NAND flash memory for hyperscale data centers.
Fiscal second-quarter results demonstrate the strategy’s effectiveness. Revenue reached $3 billion, up 61% from the prior year. Earnings multiplied more than fivefold during the same timeframe.
Industry Shortage Fuels Pricing Strength
A critical NAND flash supply shortage drives the company’s momentum. AI data centers require vast amounts of flash storage to power training operations and manage datasets. Consumer devices with generative AI capabilities also demand higher storage specifications.
Sandisk runs its manufacturing facilities at full capacity. Even with maximum production, supply cannot meet demand. Hyperscale customers accept premium pricing to lock in available capacity.
Reports indicate the company will double prices for enterprise 3D NAND solid-state drives during the current quarter. With 2026 NAND flash production entirely committed, pricing pressure appears sustainable.
Management guidance for fiscal Q3 targets earnings of $13 per share at the midpoint. This contrasts sharply with the $0.30 per share loss from the year-ago quarter.
Expanding Market Creates Growth Runway
The high-bandwidth memory market totaled $35 billion in 2025. Micron Technology projects the market will expand at a 40% compound annual rate, reaching $100 billion by 2028.
Sandisk’s trailing twelve-month revenue stands at $9 billion. The gap between current scale and total market size highlights substantial expansion opportunity.
Competition exists from Micron Technology, Samsung, and SK Hynix. However, Sandisk’s positioning in AI infrastructure offers advantages comparable to Nvidia’s early GPU market leadership.
Technology companies plan to invest $680 billion in capital expenditures this year. While GPU spending dominates discussions, memory storage requirements grow proportionally as AI deployments scale.
Financial Projections Point Higher
Wall Street analysts forecast fiscal 2026 earnings at $39.45 per share compared to $2.99 in fiscal 2025. Estimates for fiscal 2027 reach $73.69 per share.
First-half fiscal 2026 results delivered $7.55 per share in earnings. Consensus expectations call for $31.90 per share during the second half ending in June.
Sandisk’s current valuation stands at 15 times forward earnings. The Nasdaq-100 index trades at a forward multiple of 24.7.
A 20 times earnings multiple applied to calendar 2026 estimates of $70.07 per share produces a $1,401 price target. This calculation implies 158% potential appreciation from present levels.
Shares closed at $625.78, giving the company a $92 billion market capitalization. Trading volume measured 758,000 shares against a 16 million share average.
The company delivered $7.55 per share in first-half fiscal 2026 earnings. With consensus targets projecting $31.90 per share for the second half through June, full-year performance appears on track to meet or exceed analyst expectations as AI infrastructure investments continue accelerating.
