SanDisk (SNDK) inventory simply acquired one of the vital aggressive votes of confidence on Wall Road.
Bernstein SocGen Group analyst Mark C. Newman simply dropped a jaw-dropping new value goal of $1,000 on the reminiscence chip gamers’ inventory whereas holding an outperform ranking.
The brand new goal represents a 72.4% improve from the prior $580 goal and roughly 50% upside from the present value of $665.
For perspective, that’s the very best value goal on the Road, with consensus common value targets pointing to modest upside following SanDisk inventory’s meteoric run.
Reminiscence shares have been on a killer run these days, with corporations together with Micron (MU), SK Hynix, and Samsung seeing each fundamentals and share costs surge.
A lot of that unbelievable momentum comes from a steep supply-demand imbalance in reminiscence, as AI hyperscalers proceed to drive outsized demand. Nevertheless, after a exceptional run, many of those AI reminiscence gamers are buying and selling at nosebleed valuations.
For example, Micron inventory presently trades at nearly 11.6-times trailing-12-month gross sales. On the flip aspect, some areas of the reminiscence house look far much less stretched, with names like SanDisk buying and selling at simply 3.2 occasions gross sales.
Timing issues, particularly with the market attempting to find a contemporary narrative after a current pullback in treasured metals. SanDisk delivered precisely that.
Bernstein analyst Mark Newman raised SanDisk’s value goal to $1,000 after the corporate’s blowout quarter.
Picture by VCG on Getty Photos
SanDisk’s quarter places the NAND rebound on full show
SanDisk simply posted bombastic quarterly numbers throughout each traces, compelling analysts to successfully rethink the whole earnings arc.
To start out, SanDisk reported gross sales of $3.03 billion, up 61% 12 months over 12 months and 31% sequentially.
Profitability jumped alongside it.
GAAP web revenue got here in at an attention-grabbing $803 million, or $5.15 per share, whereas non-GAAP EPS skyrocketed to $6.20, up from simply $1.23 a 12 months earlier.
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On prime of that, non-GAAP gross margins surged to 51.1%, a 21.2-point sequential bounce and 18.6 factors 12 months over 12 months, underscoring wholesome working leverage stemming from sturdy pricing, combine, and utilization.
SanDisk’s quarter by the numbers
- Income: $3.03 billion (+61% 12 months over 12 months, +31% quarter over quarter)
- Non-GAAP EPS: $6.20 vs. $3.33 consensus
- Gross margin: 51.1%, sharply increased quarter over quarter and 12 months over 12 months
- Datacenter income: $440 million (+64% quarter over quarter, +76% 12 months over 12 months)
These outcomes have been pushed by a more healthy product combine and rising enterprise SSD deployments. On prime of that, datacenter demand stood out, with AI infrastructure prospects scaling storage alongside compute.
CEO David Goeckeler completely summed up the shift with a sign to buyers.
Newman hailed the quarter as being a “significant beat and guide to usher in the Year of the Fire-Horse,” backed by a “very strong pricing environment” in elevating his value goal. In doing so, he additionally bumped FY2026 EPS estimates to $38.92 and FY2027 to $90.96, an eye-popping 188% above consensus.
As we glance forward, SanDisk guided for Q3 gross sales to fall within the $4.40 to $4.80 billion vary, with non-GAAP EPS of $12 to $14, together with gross margins at almost 65% to 67%. For perspective on how giant these margins are, Micron’s gross margin sits at roughly 45%.
Why this reminiscence rally seems completely different for SanDisk
SanDisk is working in a singular and highly effective nook of the reminiscence house.
Following its separation from Western Digital, SanDisk turned a pure-play NAND flash and storage firm.
Not like different reminiscence chip giants, SanDisk isn’t totally depending on the capital-heavy HBM arms race.
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Although the AI growth is a giant a part of its enterprise, SanDisk additionally manufactures NAND-based merchandise (consumer and enterprise SSDs, embedded flash, and detachable storage), an space the place pricing collapsed in 2023-2024 however is now rebounding sharply.
For perspective, again in Q1 2023, TrendForce forecast that NAND common promoting costs would drop almost 15% quarter over quarter, pushing the business’s income down 16.1% quarter over quarter.
By late 2024, the downcycle was nonetheless in play, with NAND contract costs down 3% to eight% in This fall, in keeping with TrendForce. Nevertheless, the tide started to show in mid-to-late 2025, when TrendForce reported contract costs rising 5% to 10% (Q3) and once more 5% to 10% (This fall).
The exclamation level got here extra just lately, when TrendForce upgraded its Q1 2026 outlook to greater than 55% to 60% quarter-over-quarter contract-price beneficial properties.
SanDisk is the cleanest option to play the NAND rebound
That’s precisely why SanDisk is the cleanest option to journey the basic memory-cycle snapback. With NAND costs turning, we’ve seen a exceptional rebound within the firm’s top- and bottom-line outcomes.
SanDisk stands out proper now for quite a lot of causes.
- Pure NAND publicity: It sidesteps DRAM or HBM distractions as pricing restoration flows straight to its already spectacular fundementals.
- Decrease execution danger: There’s no want for SanDisk to defend HBM share or justify gigantic AI capex constantly.
- Reset expectations: The inventory has been priced for ache, not perfection, resulting in under-owned NAND restoration names drawing a ton of curiosity.
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