TLDR
- SanDisk shares jumped 3% in pre-market after Morgan Stanley raised price target from $273 to $483
- Five-star analyst Joseph Moore cites strong NAND market conditions driven by enterprise SSD demand
- Two cloud providers ordered nearly 10% of 2025 global NAND supply, tightening market availability
- Moore boosted March quarter estimates to $2.94 billion revenue and $5.71 non-GAAP EPS
- Wall Street expects Q2 earnings of $3.58 per share on January 29, up from $1.23 last year
SanDisk stock climbed more than 3% during Tuesday’s pre-market hours after Morgan Stanley delivered a substantial price target upgrade. Analyst Joseph Moore lifted his target to $483 from $273, representing a 75% increase. He maintained his Buy rating on the stock.
The upgrade arrives just before SanDisk reports Q2 FY26 earnings on January 29. Wall Street forecasts earnings per share of $3.58, a sharp rise from $1.23 in the same quarter a year earlier.
Moore’s optimism stems from robust NAND market fundamentals. Enterprise solid-state drive demand continues accelerating at a rapid pace. Two major cloud customers have already secured nearly 10% of global NAND supply for the entire year of 2025.
That concentrated purchasing has created supply constraints throughout the market. Consumer segments face tighter availability as well. The squeeze is lifting NAND prices across all applications.
Enterprise Buying Creates Supply Crunch
SanDisk ranks among the world’s leading NAND flash memory producers. These chips power everything from SSDs to smartphone storage to USB drives.
Moore identified enterprise solid-state drives as the main catalyst behind current NAND market strength. Heavy buying from enterprise customers has reduced supply available for consumer products. This imbalance is supporting higher prices industry-wide.
The analyst pointed out his revised estimates remain aligned with management’s December quarter guidance. This conservative approach suggests potential for upside when the company reports results.
Forecasts Rise on Pricing Optimism
Moore made substantial changes to his March quarter financial projections. He now expects revenue of $2.94 billion paired with non-GAAP earnings per share of $5.71.
The updated figures reflect brighter assumptions about NAND pricing trends. Moore increased his forecast for NAND average selling prices to a 20% quarter-over-quarter gain. His prior estimate called for only a 10% increase.
He simultaneously adjusted his bit shipment expectations. The new outlook anticipates a 6% sequential decline versus his earlier projection of an 8% drop.
Consensus Target Trails Recent Rally
Analysts maintain a Moderate Buy rating on SanDisk stock. The past three months saw 11 Buy ratings and four Hold ratings assigned. The average price target of $384.20 implies roughly 18% downside from current trading levels.
That consensus figure lags well behind the stock’s recent performance. SanDisk shares have rocketed 1,255% higher over the last 12 months. The bulk of gains occurred since September began.
The company joined the S&P 500 in November following its remarkable run. It claimed the title of best-performing stock in the index for the year.
Enterprise solid-state drives use more NAND chips than alternative storage products. These bulky devices have consumed massive supply volumes as AI data center infrastructure expands. Moore’s new $483 target, despite the 75% increase, still sits below SanDisk’s current trading price around $473.
