Sandisk Stock Declines Amid Market Strength and Analyst Concerns
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 4d ago
0mins
Should l Buy SNDK?
Source: Benzinga
Sandisk Corp's stock price fell by 5.81% as it crossed below the 5-day SMA, reflecting a downturn despite broader market gains in the Nasdaq-100 and S&P 500 indices.
The decline comes amid concerns raised by Citadel Advisors, which sold nearly 2 million shares of Sandisk, reducing its stake by 97%. This move reflects apprehensions regarding cyclical risks in the storage chip industry that could impact Sandisk's future market performance. Additionally, while Sandisk expects adjusted earnings to jump 160% in Q2, analysts caution that the company may face challenges if supply exceeds demand in the memory chip market.
This situation highlights the volatility in the semiconductor sector, where despite strong demand for AI infrastructure, investor sentiment can shift rapidly based on market dynamics and institutional actions.
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Analyst Views on SNDK
Wall Street analysts forecast SNDK stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for SNDK is 283.69 USD with a low forecast of 220.00 USD and a high forecast of 410.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
14 Analyst Rating
11 Buy
3 Hold
0 Sell
Strong Buy
Current: 576.200
Low
220.00
Averages
283.69
High
410.00
Current: 576.200
Low
220.00
Averages
283.69
High
410.00
About SNDK
SanDisk Corporation is a developer, manufacturer and provider of data storage devices and solutions based on NAND flash technology and has consumer brands and franchises globally. The Company's solutions include a range of solid state drives (SSDs) embedded products, removable cards, universal serial bus (USB) drives, and wafers and components. Its broad portfolio of technology and products addresses multiple end markets of cloud, client and consumer. Its cloud end market is comprised primarily of products for public or private cloud environments and enterprise customers. The Company, through the client end market, provides numerous data solutions that it incorporates into its client’s devices, which consist of solid state drive desktop and notebook personal computers, gaming consoles and set top boxes, and flash-based embedded storage products. The Company serves the consumer end market with a portfolio of solid state drives and removable flash, including cards and USB flash drives.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Memory Market Booms: Sandisk and Micron Thrive
- Strong Performance of Sandisk: Sandisk (SNDK) has seen a 3.85% increase since its spin-off from Western Digital in February 2025, with a current price of $22.21, benefiting from NAND flash shortages and surging AI demand, which is expected to drive rapid revenue and gross margin growth.
- Favorable Market Conditions: With most major memory manufacturers cautious about NAND production, Sandisk, as the only pure-play publicly traded U.S. flash memory maker, is in an ideal market environment, and the NAND market is expected to remain tight, with pricing being the main growth driver for the company.
- Micron's Technological Edge: Micron Technology (MU) has increased by 3.17%, currently priced at $12.13, deriving about 80% of its revenue from DRAM, benefiting from a 40% annual growth in HBM demand, which is expected to significantly boost revenue and gross margins.
- Manufacturing Challenges: Although Micron is working to increase HBM capacity, the complexity of HBM manufacturing requires three times the wafer capacity of regular DRAM, leading to a DRAM industry shortage and rising prices, positioning Micron to benefit from this super-cycle in AI infrastructure growth for years to come.
See More
Tech Sector Momentum: Key Memory Stocks to Buy
- Market Trend Analysis: The tech sector is currently experiencing strong upward momentum, particularly in the memory market, where the surge in AI demand has led to a shortage of NAND flash, making stocks like Sandisk exceptionally hot, which is expected to drive rapid revenue and gross margin growth.
- Sandisk's Strong Performance: As the only pure-play publicly traded U.S. flash memory maker, Sandisk has seen its stock price soar since its spin-off from Western Digital in February 2025, primarily benefiting from tight NAND pricing and the demand for high-performance solid-state drives, a trend expected to continue.
- Micron's Technological Edge: Micron Technology derives 80% of its revenue from DRAM, and with HBM demand growing at an annual rate of 40%, the company is working to increase capacity to meet this demand, although the complexity of HBM production has led to a DRAM industry shortage.
- Investment Recommendations: Despite Sandisk's strong current performance, it was not included in the Motley Fool's list of top investment stocks, suggesting that investors should focus on stocks with greater potential for higher returns.
See More
Micron Fully Sold Out of Memory for 2026
- Supply-Demand Imbalance: The AI boom has created a significant shortage of DRAM, HBM, and NAND storage, with demand far outpacing supply, which is primarily controlled by a few key players, presenting a lucrative opportunity for memory designers and manufacturers.
- Micron's Revenue Surge: Micron's latest quarterly revenue reached $13.6 billion, a nearly 50% increase year-over-year, with projections for the next quarter to soar to $18.7 billion, highlighting its strong growth potential in the high-margin enterprise market.
- Western Digital Buyback: Western Digital announced a $4 billion stock buyback, signaling confidence in future growth, with its stock price surging over 50% since the beginning of 2026, reflecting strong market demand for its advanced storage solutions.
- SanDisk's Strong Performance: SanDisk reported a 31% revenue increase and a remarkable 64% rise in data center revenue, with expectations of adding over $1 billion in the next quarter, further solidifying its leadership in the NAND technology market.
See More
Investment Analysis in Storage Sector: Sandisk vs. Pure Storage
- Market Performance Comparison: Sandisk's stock surged 1,560% over the past year due to memory chip supply shortages, while Pure Storage's shares have remained stable, indicating differing market expectations for the two companies.
- Analyst Price Targets: Sandisk has a median target price of $717.50 per share, implying a 20% upside from its current price of $598, whereas Pure Storage's target price of $100 per share suggests a 40% upside, reflecting greater market confidence in the latter.
- Technological Advantages: Sandisk enhances its competitiveness in the NAND flash market through collaboration with Kioxia, sharing R&D and capital expenditures, while Pure Storage offers superior storage density and lower power consumption with its 3D NAND and Evergreen architecture, making it ideal for AI workloads.
- Earnings Expectations: Sandisk reported a 404% growth in non-GAAP earnings last quarter, with an expected annual growth rate of 410% through fiscal 2027; in contrast, Pure Storage achieved a 16% growth in non-GAAP earnings, with a projected annual growth rate of 23%, highlighting significant differences in profitability between the two companies.
See More
Memory Shortage Opportunities Amid AI Boom
- Surging Memory Demand: The AI boom has created an unprecedented demand for DRAM and HBM, leading to a significant memory shortage that presents substantial market opportunities for memory manufacturers like Micron, Western Digital, and SanDisk.
- Micron's Market Edge: Micron's revenue soared to $13.6 billion over the past year, with projections of reaching $18.7 billion in Q2, as its limited production capacity and high gross margins solidify its competitive advantage, having already sold out through 2026.
- Western Digital's Strong Performance: Western Digital's stock surged over 50% at the start of 2026, coupled with a $4 billion share buyback announcement, highlighting its leadership in high-capacity 3D NAND flash memory essential for AI and data center storage needs.
- SanDisk's Resurgence: After separating from Western Digital, SanDisk reported a 31% revenue increase and a 64% rise in data center revenue in Q2, with expectations of adding over $1 billion in revenue next quarter, showcasing strong demand and pricing power in the NAND market.
See More
AI Infrastructure Drives Micron and Sandisk Stock Surge
- Micron's Revenue Surge: Micron Technology (MU) reported a 59% revenue increase last quarter, with gross margins rising from 38.4% to 56%, reflecting strong performance in the DRAM market and significant profitability enhancement amid soaring AI infrastructure demand.
- DRAM Shortage Impact: The complexity of producing high-bandwidth memory (HBM), which requires 3 to 4 times the wafer capacity of standard DRAM, has led to an overall DRAM shortage and price increases, providing Micron with substantial revenue growth and competitive advantages in the market.
- Sandisk's Market Opportunity: Sandisk (SNDK), as a pure play in the NAND market, is benefiting from ongoing supply shortages, with a remarkable 76% revenue increase last quarter and gross margins climbing from 32.3% to 50.9%, highlighting its critical role in the growing AI infrastructure demand.
- Flash Memory Supercycle: With the increasing demand for high-performance solid-state drives (SSDs) in AI infrastructure, the ongoing supply shortage in the flash memory market positions Sandisk favorably to capitalize on this trend, suggesting continued growth potential in the future.
See More
Memory Market Booms: Sandisk and Micron Thrive
- Strong Performance of Sandisk: Sandisk (SNDK) has seen a 3.85% increase since its spin-off from Western Digital in February 2025, with a current price of $22.21, benefiting from NAND flash shortages and surging AI demand, which is expected to drive rapid revenue and gross margin growth.
- Favorable Market Conditions: With most major memory manufacturers cautious about NAND production, Sandisk, as the only pure-play publicly traded U.S. flash memory maker, is in an ideal market environment, and the NAND market is expected to remain tight, with pricing being the main growth driver for the company.
- Micron's Technological Edge: Micron Technology (MU) has increased by 3.17%, currently priced at $12.13, deriving about 80% of its revenue from DRAM, benefiting from a 40% annual growth in HBM demand, which is expected to significantly boost revenue and gross margins.
- Manufacturing Challenges: Although Micron is working to increase HBM capacity, the complexity of HBM manufacturing requires three times the wafer capacity of regular DRAM, leading to a DRAM industry shortage and rising prices, positioning Micron to benefit from this super-cycle in AI infrastructure growth for years to come.
See More
Tech Sector Momentum: Key Memory Stocks to Buy
- Market Trend Analysis: The tech sector is currently experiencing strong upward momentum, particularly in the memory market, where the surge in AI demand has led to a shortage of NAND flash, making stocks like Sandisk exceptionally hot, which is expected to drive rapid revenue and gross margin growth.
- Sandisk's Strong Performance: As the only pure-play publicly traded U.S. flash memory maker, Sandisk has seen its stock price soar since its spin-off from Western Digital in February 2025, primarily benefiting from tight NAND pricing and the demand for high-performance solid-state drives, a trend expected to continue.
- Micron's Technological Edge: Micron Technology derives 80% of its revenue from DRAM, and with HBM demand growing at an annual rate of 40%, the company is working to increase capacity to meet this demand, although the complexity of HBM production has led to a DRAM industry shortage.
- Investment Recommendations: Despite Sandisk's strong current performance, it was not included in the Motley Fool's list of top investment stocks, suggesting that investors should focus on stocks with greater potential for higher returns.
See More
Micron Fully Sold Out of Memory for 2026
- Supply-Demand Imbalance: The AI boom has created a significant shortage of DRAM, HBM, and NAND storage, with demand far outpacing supply, which is primarily controlled by a few key players, presenting a lucrative opportunity for memory designers and manufacturers.
- Micron's Revenue Surge: Micron's latest quarterly revenue reached $13.6 billion, a nearly 50% increase year-over-year, with projections for the next quarter to soar to $18.7 billion, highlighting its strong growth potential in the high-margin enterprise market.
- Western Digital Buyback: Western Digital announced a $4 billion stock buyback, signaling confidence in future growth, with its stock price surging over 50% since the beginning of 2026, reflecting strong market demand for its advanced storage solutions.
- SanDisk's Strong Performance: SanDisk reported a 31% revenue increase and a remarkable 64% rise in data center revenue, with expectations of adding over $1 billion in the next quarter, further solidifying its leadership in the NAND technology market.
See More
Investment Analysis in Storage Sector: Sandisk vs. Pure Storage
- Market Performance Comparison: Sandisk's stock surged 1,560% over the past year due to memory chip supply shortages, while Pure Storage's shares have remained stable, indicating differing market expectations for the two companies.
- Analyst Price Targets: Sandisk has a median target price of $717.50 per share, implying a 20% upside from its current price of $598, whereas Pure Storage's target price of $100 per share suggests a 40% upside, reflecting greater market confidence in the latter.
- Technological Advantages: Sandisk enhances its competitiveness in the NAND flash market through collaboration with Kioxia, sharing R&D and capital expenditures, while Pure Storage offers superior storage density and lower power consumption with its 3D NAND and Evergreen architecture, making it ideal for AI workloads.
- Earnings Expectations: Sandisk reported a 404% growth in non-GAAP earnings last quarter, with an expected annual growth rate of 410% through fiscal 2027; in contrast, Pure Storage achieved a 16% growth in non-GAAP earnings, with a projected annual growth rate of 23%, highlighting significant differences in profitability between the two companies.
See More
Memory Shortage Opportunities Amid AI Boom
- Surging Memory Demand: The AI boom has created an unprecedented demand for DRAM and HBM, leading to a significant memory shortage that presents substantial market opportunities for memory manufacturers like Micron, Western Digital, and SanDisk.
- Micron's Market Edge: Micron's revenue soared to $13.6 billion over the past year, with projections of reaching $18.7 billion in Q2, as its limited production capacity and high gross margins solidify its competitive advantage, having already sold out through 2026.
- Western Digital's Strong Performance: Western Digital's stock surged over 50% at the start of 2026, coupled with a $4 billion share buyback announcement, highlighting its leadership in high-capacity 3D NAND flash memory essential for AI and data center storage needs.
- SanDisk's Resurgence: After separating from Western Digital, SanDisk reported a 31% revenue increase and a 64% rise in data center revenue in Q2, with expectations of adding over $1 billion in revenue next quarter, showcasing strong demand and pricing power in the NAND market.
See More
AI Infrastructure Drives Micron and Sandisk Stock Surge
- Micron's Revenue Surge: Micron Technology (MU) reported a 59% revenue increase last quarter, with gross margins rising from 38.4% to 56%, reflecting strong performance in the DRAM market and significant profitability enhancement amid soaring AI infrastructure demand.
- DRAM Shortage Impact: The complexity of producing high-bandwidth memory (HBM), which requires 3 to 4 times the wafer capacity of standard DRAM, has led to an overall DRAM shortage and price increases, providing Micron with substantial revenue growth and competitive advantages in the market.
- Sandisk's Market Opportunity: Sandisk (SNDK), as a pure play in the NAND market, is benefiting from ongoing supply shortages, with a remarkable 76% revenue increase last quarter and gross margins climbing from 32.3% to 50.9%, highlighting its critical role in the growing AI infrastructure demand.
- Flash Memory Supercycle: With the increasing demand for high-performance solid-state drives (SSDs) in AI infrastructure, the ongoing supply shortage in the flash memory market positions Sandisk favorably to capitalize on this trend, suggesting continued growth potential in the future.
See More
