SanDisk Stock: After 100% Surge, Analysts See Room for Growth Through 2026
Shares of SanDisk (SNDK) have more than doubled this month, yet one Wall Street firm contends the memory storage leader's explosive run may be far from over. The bullish case hinges on structural shifts in demand and pricing power that could propel the stock well into 2026.
The optimism follows SanDisk's staggering second-quarter financial results, released January 29, which demolished analyst estimates. The company's current-quarter earnings guidance of $13 per share stunned the market, more than doubling the Wall Street consensus of $5.11.
In a research note that has captured investor attention, Cantor Fitzgerald analyst Christopher Muse outlined a path for continued gains. He points to a projected 50% climb in NAND flash prices during SanDisk's fiscal third quarter—a "rare" level of pricing control in the historically cyclical memory sector.
This favorable environment, Muse suggests, could drive SanDisk's gross margin to approximately 67% this year, a dramatic leap from under 35% just months ago. He attributes this strength partly to the company's enterprise solid-state drives (SSDs), which he calls "critical enablers" for building hyperscale artificial intelligence infrastructure.
Muse has set a price target of $800 for SanDisk by the end of 2026, implying a potential 35% upside from current levels. He also notes a significant change in customer behavior: a shift from quarterly price negotiations to multi-year agreements, which could help smooth out the volatility typically associated with memory stocks.
Valuation, while rich, offers a relative bargain compared to other AI hardware plays. SanDisk trades at a forward price-to-earnings multiple of about 34x, notably below Nvidia's (NVDA) 43x at the time of writing. Muse forecasts earnings per share of $77 for this year, rising to $91 in 2027.
The technical picture reinforces the bullish narrative, with the stock trading decisively above its key moving averages. Wall Street's consensus rating remains a "Moderate Buy," though the average price target of $443 is likely due for significant upward revisions following the earnings blowout.
Market Voices
Arjun Patel, Portfolio Manager at Clearwater Capital: "This isn't just a cyclical uptick. SanDisk is locking in long-term contracts and is central to the AI data pipeline. The margin expansion story is real and likely sustainable."
Lisa Chen, Tech Analyst at Broadview Research: "The guidance was astonishing, but we must be cautious. NAND pricing is famously fickle. This level of margin assumes perfect execution and sustained demand—any stumble could lead to a sharp correction."
Michael Doyle, Independent Trader: "It's pure euphoria. The stock is up 100% in a month and they're talking about another 35%? This is a classic 'buy the rumor, sell the news' setup. The moment pricing momentum slows, this house of cards comes down."
Rebecca Shaw, CIO at Horizon Advisors: "The shift to multi-year agreements is the unsung hero here. It fundamentally de-risks the business model and justifies a higher multiple. We've been adding on strength."
Disclosure: The author had no positions in the securities mentioned at the time of publication. This article is for informational purposes only and was originally sourced from Barchart.com.