Surge in Demand for Sandisk Storage Devices Drives Stock Up
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Apr 06 2026
0mins
Source: NASDAQ.COM
Sandisk Corp's stock has surged by 5% in pre-market trading, crossing above its 5-day SMA, reflecting strong investor interest. The surge is attributed to a significant increase in demand for Sandisk's storage devices as tech giants like Amazon, Microsoft, and Apple ramp up their data center builds, leading to a supply shortage. This situation has allowed Sandisk to raise prices and expand profit margins, with gross margins soaring from 26% to over 78%. However, while the current demand provides strong pricing power, there are concerns about future production catching up with demand, which could compress margins and pose risks for investors.
The stock's remarkable performance, skyrocketing over 5,655% since its spin-off from Western Digital in February 2025, highlights its strong market position. Sandisk currently holds a $42 billion backlog, including multiyear contracts, which will help insulate the company from sudden price drops when supply eventually catches up. The ongoing volatility in the market is expected to continue, but the company's strong fundamentals provide a solid foundation for future growth.
Overall, Sandisk's ability to capitalize on the surge in demand for storage devices amid the growing AI market positions it well for continued success, attracting significant investor interest and confidence.
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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: 1958.800
Low
220.00
Averages
283.69
High
410.00
Current: 1958.800
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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- Key Role in AI Market: Sandisk's NAND flash memory technology is critical for AI chips that process large amounts of data, ensuring performance stability and driving increased market demand for its products.
- Optimistic Future Outlook: CEO David Goeckeler described Q3 FY2026 as a 'fundamental inflection point' for the company, with a projected Q4 revenue midpoint of $8 billion, representing a 34.4% sequential growth, showcasing strong growth potential.
- Attractive Valuation: Despite the significant stock price increase, Sandisk's P/E ratio of 67.7 remains lower than the industry benchmark of 36.8, with a forward P/E of 30.6, indicating that its valuation will become increasingly attractive as revenue and net income continue to grow.
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- Analyst Target Upgrades: Wedbush raised Micron's price target from $550 to $1,300, implying a 22% upside, while maintaining an 'Outperform' rating, indicating strong expectations for rising DRAM and NAND prices.
- Apple's Price Increase Expectations: Apple plans to raise retail prices across its hardware lineup to counter rising memory and storage chip costs, with CEO Tim Cook stating that price hikes have become unavoidable, further fueling demand expectations for memory chips.
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See More
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- Significant Performance Growth: Sandisk's stock has surged over 4,850% in the past year, with net profit margins exceeding 60% and revenue nearly doubling in fiscal Q3 2026, indicating robust fundamental support.
- Key Role in AI Market: Sandisk's NAND flash memory technology is critical for AI chips that process large amounts of data, ensuring performance stability and driving increased market demand for its products.
- Optimistic Future Outlook: CEO David Goeckeler described Q3 FY2026 as a 'fundamental inflection point' for the company, with a projected Q4 revenue midpoint of $8 billion, representing a 34.4% sequential growth, showcasing strong growth potential.
- Attractive Valuation: Despite the significant stock price increase, Sandisk's P/E ratio of 67.7 remains lower than the industry benchmark of 36.8, with a forward P/E of 30.6, indicating that its valuation will become increasingly attractive as revenue and net income continue to grow.
See More
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- Holding Expansion: Situational Awareness initially acquired 115,000 shares of SanDisk at approximately $100 per share in Q3 2025 and expanded its holdings to 1.14 million shares by the end of March this year, demonstrating strong confidence in the company's growth prospects.
- Stock Price Surge: SanDisk's stock has skyrocketed nearly 4,860% over the past year, reaching $2,107.86 on Monday, with Situational Awareness's investment now valued at $2.4 billion, reflecting its successful positioning in the AI-driven memory market.
- Optimistic Market Sentiment: According to Stocktwits, over 75% of users expressed bullish sentiment towards SanDisk, indicating that they believe the memory chip sector still has room for further growth, providing robust market support for Situational Awareness's investment.
- Strategic Investment Background: Founded by former OpenAI researcher Aschenbrenner, Situational Awareness focuses on AI-related investments, with its strategy based on the expectation of explosive demand for AI, showcasing its forward-thinking approach in the rapidly evolving tech landscape.
See More
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- Record High Achievement: Micron Technology (MU) shares surged 8.7% on Thursday, closing at $1,133.99, marking a record high and extending year-to-date gains to nearly 305%, reflecting robust market demand and investor confidence.
- Analyst Target Upgrades: Wedbush raised Micron's price target from $550 to $1,300, implying a 22% upside, while maintaining an 'Outperform' rating, indicating strong expectations for rising DRAM and NAND prices.
- Apple's Price Increase Expectations: Apple plans to raise retail prices across its hardware lineup to counter rising memory and storage chip costs, with CEO Tim Cook stating that price hikes have become unavoidable, further fueling demand expectations for memory chips.
- Market Sentiment Analysis: While sentiment for Micron remains 'neutral', SanDisk (SNDK) shows a 'bullish' sentiment on social media, with SNDK's stock soaring nearly 805% year-to-date, indicating strong investor confidence in the storage market.
See More
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- Chip Sector Surge: Intel's stock jumped over 10% after President Trump announced a partnership with Apple to design and produce semiconductors domestically, leading the iShares Semiconductor ETF to rise more than 7%, indicating strong momentum in the tech sector.
- Energy Stocks Weaken: WTI crude oil prices fell to a 3.5-month low, causing significant declines in energy stocks, with SLB, ConocoPhillips, and Halliburton dropping over 3%, highlighting concerns over energy price volatility.
- Supportive Economic Data: Initial jobless claims fell to 226,000, close to the expected 225,000, indicating labor market strength, while the Philadelphia Fed business outlook index rose to 10.3, surpassing expectations, further boosting investor confidence.
See More
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- Surging Demand: The demand for memory chips has surged due to the AI infrastructure build-out, leading to significant revenue and profit increases for Micron and Sandisk, with data center capital expenditures projected to reach $1 trillion by 2027, further driving memory demand.
- Earnings Expectations: Micron is expected to achieve an earnings per share (EPS) of $113.81 for fiscal 2027, while Sandisk's EPS is projected at $183.05, both significantly higher than their respective past 12-month figures of $21.18 and $28.77, indicating strong growth potential.
- Price Projections: If both companies trade at a price-to-earnings ratio of 20 times by the end of their respective fiscal 2027s, Micron's stock could reach $2,276 per share and Sandisk's could hit $3,661, reflecting a doubling of their current prices and optimistic market expectations.
- Investment Opportunity: With the ongoing expansion of data centers, Micron and Sandisk's stock prices could exceed $2,500 and $4,000 respectively before the end of 2027, presenting a compelling buying opportunity for investors and showcasing their strong market potential.
See More
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- Surge in Memory Demand: Driven by the AI infrastructure build-out, the demand curve for memory chips has sharply risen, leading to demand for Micron and Sandisk's products far exceeding supply, a trend expected to persist through 2027, significantly enhancing both companies' future revenue potential.
- Impressive Stock Performance: Year-to-date, Micron's stock has risen nearly 300%, while Sandisk's has soared nearly 800%, indicating strong market confidence in both companies' growth prospects; analysts believe this is just the beginning, with further upside potential ahead.
- Strong Earnings Projections: Analysts expect Micron's earnings per share (EPS) to reach $113.81 for fiscal 2027, while Sandisk's EPS is projected at $183.05, and with a 20x price-to-earnings ratio at the end of 2027, this would price Micron at $2,276 and Sandisk at $3,661, showcasing robust growth potential.
- Data Center Investment Boom: The four largest AI hyperscalers plan to invest $650 billion in data centers in 2026, projected to grow to $1 trillion in 2027, driving sustained demand for memory chips and further solidifying Micron and Sandisk's positions in the market.
See More
