Google's AI Breakthrough May Impact Storage Market
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Apr 07 2026
0mins
Should l Buy SNDK?
Source: Fool
- Cost Reduction in AI Computing: Google's TurboQuant technology is expected to reduce memory requirements for training large language models by at least a factor of six, which could significantly lower storage demands in AI data centers and impact price structures in the storage market.
- Supply-Demand Imbalance in Storage Market: The surge in demand for dynamic random-access memory (DRAM) and NAND flash from AI data centers has led to a chip shortage that is expected to last for three years, driving prices up and affecting the profitability of related companies.
- Market Reaction and Investor Sentiment: While investors are concerned about the potential impact of Google's new technology on Sandisk's business, Morgan Stanley analysts suggest that lower memory prices could actually boost AI consumption, enhancing Sandisk's long-term growth potential.
- Future Growth Expectations: Sandisk's earnings per share are projected to jump from $2.99 to $40.27 in the current fiscal year, and despite potential declines in future earnings, strong storage demand may enable it to exceed analyst expectations, making it a tech stock worth investing in.
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Analyst Views on SNDK
Wall Street analysts forecast SNDK stock price to fall
14 Analyst Rating
11 Buy
3 Hold
0 Sell
Strong Buy
Current: 944.460
Low
220.00
Averages
283.69
High
410.00
Current: 944.460
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 Datacenter, Edge and Consumer. Its Datacenter end market is composed primarily of products for public or private cloud environments and enterprise customers. The Company, through the Edge end market, provides original equipment manufacturer and channel customers a broad array of high-performance flash solutions across personal computer, mobile, gaming, automotive, virtual reality headsets, at-home entertainment, and industrial spaces. The Company serves the Consumer end market with a broad range of retail and other end-user products.
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.
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- Analyst Rating Upgrade: Evercore ISI initiated coverage on Sandisk today with an Outperform rating and a price target of $1,200, with a bull case target of $2,600, reflecting optimism about its role in the AI infrastructure sector.
- Strong Market Demand: Evercore analysts highlighted that demand for data storage is accelerating while supply will remain constrained at least until 2028, suggesting that Sandisk will benefit from this trend, particularly as its penetration in enterprise and cloud markets is expected to accelerate.
- Financial Performance Expectations: Sandisk is set to release its third-quarter fiscal 2026 results, with consensus estimates predicting adjusted earnings per share of $14.23 and GAAP EPS of $13.62 on revenue of $4.65 billion, showcasing the company's sustained ability to maintain high margins and free cash flow.
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- Inclusion in Nasdaq-100: Sandisk is set to officially join the Nasdaq-100 index on April 20, a move that could further boost its stock price as more investment portfolios will passively hold the stock, increasing its market exposure.
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See More
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- Joining Nasdaq-100 Index: Sandisk will officially join the Nasdaq-100 index on April 20, which means its stock will be included in more investment portfolios, potentially driving further price increases.
- Investor Risk Awareness: Despite the optimistic outlook for Sandisk, investors should be cautious of potential pullback risks due to the current hesitance in the tech sector, especially after significant price increases.
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See More
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- Stock Surge: Sandisk (SNDK) saw its stock price jump 12% by market close on Monday, with the price quadrupling since the start of 2026, indicating strong market confidence in its future growth.
- Analyst Rating Upgrade: Evercore ISI initiated coverage on Sandisk today with an Outperform rating and a price target of $1,200, with a bull case target of $2,600, reflecting optimism about its role in the AI infrastructure sector.
- Strong Market Demand: Evercore analysts highlighted that demand for data storage is accelerating while supply will remain constrained at least until 2028, suggesting that Sandisk will benefit from this trend, particularly as its penetration in enterprise and cloud markets is expected to accelerate.
- Financial Performance Expectations: Sandisk is set to release its third-quarter fiscal 2026 results, with consensus estimates predicting adjusted earnings per share of $14.23 and GAAP EPS of $13.62 on revenue of $4.65 billion, showcasing the company's sustained ability to maintain high margins and free cash flow.
See More
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- Inclusion in Nasdaq-100: SanDisk is set to join the Nasdaq-100 index on April 20, a move expected to trigger significant buying from institutional investors, resulting in a nearly 12% stock price increase on Monday, followed by an additional 3.3% in after-hours trading.
- Analyst Rating Upgrade: Evercore initiated coverage on SNDK with an ‘Outperform’ rating and a price target of $1,200, implying a 26% upside from the last close, while Citi raised its target from $875 to $980, suggesting a potential 173% increase.
- Strong AI Infrastructure Demand: The research firm highlighted that SanDisk is well-positioned in the data storage sector, where demand is accelerating and supply constraints are expected to persist at least through 2028, driving prices higher amid surging demand from AI data centers.
- Retail Sentiment Extremely Bullish: On Stocktwits, retail sentiment for SNDK reached an extremely bullish score of 95, with traders predicting the stock could hit $1,000 before the regular market opens, although some caution that index inclusions often signal a price peak.
See More
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- Nvidia's Strong Performance: Nvidia shares rose about 1% as investors returned to tech stocks, positioning the company for an 11th consecutive winning session, marking the longest streak on record and reflecting renewed market confidence in the tech sector.
- Caterpillar Acquisition News: Caterpillar's stock dropped approximately 5% following reports of its acquisition of Monarch Tractor, a self-driving electric tractor company, which, while pressuring short-term stock performance, may enhance its competitive edge in the automated agricultural equipment market.
- Nike Insider Transactions: Nike shares advanced over 3% after CEO Elliott Hill and director Tim Cook disclosed purchases of over 23,000 and 25,000 shares, respectively, totaling around $2.1 million, indicating strong executive confidence in the company's future and potentially attracting more investor interest.
- DoorDash's Technological Outlook: DoorDash shares surged 8% after Barclays analysts highlighted its leadership in autonomous food delivery technology, which is expected to further drive market share growth and strengthen its competitive position in the industry.
See More
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- Economic Data: The April Empire Manufacturing Survey reported a rise of 11.2 in the general business conditions index to 11.0, surpassing expectations, indicating a robust manufacturing recovery; however, the April NAHB housing market index fell to 34, signaling weakness in the housing sector that could dampen investor confidence.
- Oil Price Fluctuations: WTI crude oil prices increased by over 1% due to the U.S. naval blockade in the Strait of Hormuz, which could exacerbate global oil and fuel shortages, impacting profitability in related sectors.
- Earnings Season: Q1 earnings for the S&P 500 are projected to grow by 12% year-over-year, but excluding the technology sector, growth is only expected to be around 3%, indicating a slowdown in overall earnings growth that may affect market sentiment.
See More
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- Stellar Stock Performance: Sandisk's stock has surged over 2500% in the past year, achieving a market capitalization exceeding $130 billion, reflecting robust demand for its memory and storage products, particularly driven by artificial intelligence market growth.
- Inclusion in Nasdaq-100: Sandisk is set to officially join the Nasdaq-100 index on April 20, a move that could further boost its stock price as more investment portfolios will passively hold the stock, increasing its market exposure.
- Investor Sentiment Optimistic: Although the Nasdaq-100 index has only risen about 2% this year, Sandisk's inclusion may attract more investors, especially those tracking the index through ETFs, potentially enhancing its market performance.
- Future Growth Potential: Benefiting from a shortage in flash memory demand, Sandisk's forward price-to-earnings ratio stands at 19, indicating significant growth potential ahead, though investors should remain cautious of potential price pullbacks.
See More
Sandisk's Strong Growth as New Nasdaq-100 Member
- Surging Market Demand: Sandisk has achieved over 2,500% stock price growth due to significant demand for its memory and storage products, with a market cap exceeding $130 billion, highlighting the market potential driven by artificial intelligence.
- Joining Nasdaq-100 Index: Sandisk will officially join the Nasdaq-100 index on April 20, which means its stock will be included in more investment portfolios, potentially driving further price increases.
- Investor Risk Awareness: Despite the optimistic outlook for Sandisk, investors should be cautious of potential pullback risks due to the current hesitance in the tech sector, especially after significant price increases.
- Future Growth Expectations: With a forward price-to-earnings ratio of 19 indicating reasonable valuation, Sandisk is expected to maintain growth momentum due to ongoing memory demand, attracting long-term investor interest.
See More
