TLDR
- SanDisk (SNDK) stock dropped 2.5% Monday and another 1% after hours following Samsung’s HBM4 production announcement
- Company reported fiscal Q2 2026 revenue of $3.025 billion, beating estimates by $340 million with 61% growth
- Goldman Sachs analyst lifted price target to $700 and boosted EPS forecast by 200% to $32
- Shares have surged 1,500% in twelve months with January alone posting a 145% jump
- Consensus rating shows 11 Buy and 4 Hold recommendations with $637.33 average target
SanDisk (SNDK) stock fell 2.5% during Monday’s trading session. The shares slipped another 1% in extended hours.
News that Samsung plans to begin HBM4 memory chip mass production this month pressured the stock. The announcement raised concerns about expanding supply in the memory sector.
Despite Monday’s retreat, SNDK has delivered exceptional returns. The stock has jumped 1,500% over the past year.
January contributed a 145% gain to that rally. The current pullback looks minor against that backdrop.
Goldman Sachs analyst James Schneider remains upbeat on the stock’s prospects. He raised his price target to $700, suggesting 20% upside ahead.
“We expect the stock to move higher following a quarter and guidance that were far above the Street,” the analyst stated.
Record-Breaking Q2 Performance
SanDisk’s fiscal Q2 2026 results validated the bullish outlook. Revenue hit $3.025 billion, representing 61% year-over-year expansion.
The company exceeded revenue projections by $340 million. Diluted earnings per share of $6.20 beat forecasts by $2.66.
Management guided fiscal Q3 revenue to a range of $4.4 billion to $4.8 billion. The forecast suggests continued strong performance ahead.
Schneider increased his EPS projection by 200% to $32 from $14.55. His 22x price-to-earnings multiple remained unchanged.
The Goldman analyst pointed to robust pricing expectations and favorable market dynamics. Nvidia’s recent storage controller announcement adds another demand catalyst for memory products.
“We view these results as above the most bullish investor expectations,” Schneider wrote in his research note.
Supply Concerns Emerge
Samsung’s accelerated HBM4 production schedule grabbed investor focus. Fellow memory chipmaker Micron (MU) also fell 2.9% Monday.
SanDisk doesn’t manufacture HBM chips directly. The company is working on high-bandwidth flash NAND memory products targeting AI data centers.
The key concern involves Asian producers ramping up output. Memory chip pricing that quintupled SanDisk’s profit could weaken as supply grows.
Schneider anticipates tight supply and increasing demand will push earnings estimates higher. He maintains his Buy recommendation on the shares.
Street Remains Constructive
Analyst sentiment skews positive on SNDK stock. Current coverage includes 11 Buy ratings and 4 Hold ratings.
The average price target across Wall Street sits at $637.33. That figure implies approximately 9% appreciation potential.
Goldman’s upgraded forecast reflects confidence in the company’s execution. The analyst expects supply-demand fundamentals to remain supportive through 2026.
Schneider believes a combination of constrained supply and accelerating demand will drive the stock higher. He projects these conditions will persist over the next twelve months.
