TLDR
- SanDisk (SNDK) stock jumped 10.65% Wednesday to $585.00 and continued rising with a 2% pre-market gain Thursday on memory sector rally.
- The surge followed Micron’s announcement of ahead-of-schedule HBM4 chip shipments, triggering buying across storage stocks without SanDisk-specific catalysts.
- The company is developing high-bandwidth flash NAND technology as an HBM-like solution for AI data centers to capitalize on infrastructure spending.
- Management disclosed inability to meet surging demand with supply-demand imbalance expected to persist throughout 2026, supporting pricing power.
- Wall Street rates SNDK Moderate Buy with 11 Buy and 4 Hold ratings, average price target of $637.33 suggests 6.34% upside potential.
SanDisk stock surged 10.65% Wednesday, closing at $585.00. The rally came without specific company announcements.
Memory and storage stocks rallied across the board Wednesday. Micron kicked off the sector rotation by announcing early shipments of HBM4 high-bandwidth memory chips.
SanDisk doesn’t manufacture HBM chips. But the Micron news fueled enthusiasm for high-speed memory solutions throughout the sector.
Shares reached an intraday high of $608.17 before settling at $585.00. That marked a substantial gain from Tuesday’s close of $541.62.
Volume hit 8.85 million shares Wednesday. That represented 57.8% of the 15.32 million share daily average.
Pre-market trading Thursday added another 2% to the stock’s value. Momentum from Wednesday’s session carried over into early trading.
Erasing Earlier Weekly Decline
SanDisk dropped 7% earlier this week. The decline followed Samsung’s announcement of mass production for HBM4 memory chips ahead of schedule.
Wednesday’s 10.65% gain wiped out those losses. Sector positioning and momentum trading drove the reversal.
The stock now sits 19.31% below its 52-week high of $725.00. It trades approximately 2,000% above its 52-week low of $27.89.
Year-to-date performance has been exceptional. SNDK ranks among the market’s top gainers with returns exceeding 150%.
The dramatic rally raises questions about sustainability. Some investors may look to lock in profits after the big move.
Demand Outpacing Supply Through 2026
Management recently stated the company cannot fulfill current demand. They project this supply-demand gap will continue into 2026.
SanDisk is building a high-bandwidth flash NAND product. The technology targets AI data center applications as an HBM-like alternative.
This positions the company for AI infrastructure spending. Data center operators are scrambling for storage solutions as they expand.
Constrained supply supports sustained pricing power. Revenue growth looks secure given tight market conditions.
The inability to meet demand provides revenue visibility. Strong order books appear to extend well into next year.
Wall Street Outlook and Targets
Analysts maintain a Moderate Buy rating on SNDK. Current recommendations include 11 Buy ratings and 4 Hold ratings.
No analysts rate the stock a Sell. The consensus recommendation of 2.0 on a 1-5 scale indicates “Outperform” status.
Price targets span from $235 to $1,000. The wide range reflects valuation uncertainty after the stock’s massive advance.
The average analyst target sits at $637.33. That implies 6.34% upside from Wednesday’s $585.00 closing price.
Some analysts see limited upside after the recent rally. Others believe AI-driven storage demand justifies higher valuations.
Based on 19 analyst forecasts, the one-year average price target comes in at $682.68. The high estimate reaches $1,000 while the low sits at $250.
Twenty brokerage firms contributed to the consensus recommendation. The 2.0 rating suggests most analysts see the stock outperforming the broader market.
Shares currently trade at $585.00 with Thursday’s pre-market action pushing toward $597.00. The stock remains well below its $725.00 peak reached earlier this year.
