Barclays Upgrades Sandisk, Sees 45% Upside Potential
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 41 minutes ago
0mins
Source: CNBC
- Rating Upgrade: Barclays upgraded Sandisk's stock from equal weight to overweight and raised its price target from $1,200 to $2,300, indicating a 45% upside from Tuesday's close, reflecting strong confidence in the company's future performance.
- Surging Demand: Sandisk shares have skyrocketed 4,063% over the past year, driven by a surge in memory demand, and are likely to continue rising as memory hardware supplies remain constrained, further solidifying its market position.
- New Business Model: Sandisk has introduced a new business model to capitalize on strong memory demand, outlining clear remaining performance obligations and financial guarantees loaded with prepayments, enhancing customer supply visibility and providing the company with more stable revenue and market outlook.
- Optimistic Industry Outlook: Barclays analysts noted that the memory/storage sector is the most attractive vertical outside of accelerators, with supply-demand imbalances expected to persist through 2027, further driving price increases and transforming the industry landscape.
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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: 1478.690
Low
220.00
Averages
283.69
High
410.00
Current: 1478.690
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.
Sandisk Reports Strong Growth Amid AI Boom
- Significant Revenue Growth: Sandisk reported $5.95 billion in revenue for Q3 FY2026, marking a 97% sequential increase and a 251% year-over-year growth, with guidance suggesting a midpoint of $8 billion for Q4, indicating a 34.5% sequential growth.
- Sustained Market Demand: Despite the cyclical nature of the memory chip industry, CEO David Goeckeler indicated that the NAND flash memory market will remain undersupplied at least through 2027, providing strong support for the company's growth in the coming years.
- AI Industry Driving Growth: With Grand View Research projecting a 30.6% CAGR for the AI sector, Sandisk is poised to benefit from robust demand from tech giants like Amazon and Meta, who are investing heavily in memory chips to maintain a competitive edge.
- Investor Confidence Boosted: Sandisk's stock has surged nearly 4000% over the past year, reflecting strong market confidence in its growth potential, although investors should remain cautious of cyclical risks, the current demand trends present a favorable outlook for the company.
See More
Barclays Upgrades Sandisk, Sees 45% Upside Potential
- Rating Upgrade: Barclays upgraded Sandisk's stock from equal weight to overweight and raised its price target from $1,200 to $2,300, indicating a 45% upside from Tuesday's close, reflecting strong confidence in the company's future performance.
- Surging Demand: Sandisk shares have skyrocketed 4,063% over the past year, driven by a surge in memory demand, and are likely to continue rising as memory hardware supplies remain constrained, further solidifying its market position.
- New Business Model: Sandisk has introduced a new business model to capitalize on strong memory demand, outlining clear remaining performance obligations and financial guarantees loaded with prepayments, enhancing customer supply visibility and providing the company with more stable revenue and market outlook.
- Optimistic Industry Outlook: Barclays analysts noted that the memory/storage sector is the most attractive vertical outside of accelerators, with supply-demand imbalances expected to persist through 2027, further driving price increases and transforming the industry landscape.
See More
U.S. Stock Futures Rise on Sustained AI Momentum
- Market Optimism: U.S. stock futures extended gains on Wednesday, buoyed by sustained AI-driven momentum, while investors remained cautiously optimistic about a potential deal between the U.S. and Iran, despite recent U.S. strikes near the Strait of Hormuz that Iran condemned.
- Strong Index Performance: As of 04:42 a.m. ET, Dow E-minis rose by 195 points, or 0.39%; S&P 500 E-minis increased by 21 points, or 0.28%; and Nasdaq 100 E-minis climbed by 134 points, or 0.45%, reflecting growing confidence in AI's impact on the market.
- Earnings Support: A robust earnings season and expectations of approximately 29% year-on-year growth in Q1 have fueled the rally on Wall Street, with both the S&P 500 and Nasdaq closing at record highs on Tuesday, indicating strong market confidence in future growth.
- Fed Policy Expectations: Markets are set to focus on Thursday's personal consumption expenditures (PCE) index data, which could provide crucial insights into the monetary policy direction under new chair Kevin Warsh, with expectations that the Fed will maintain rates steady for the remainder of the year, while some are pricing in a 25 bps hike in December.
See More
Memory Stock ETF Surges Rapidly, Risks Must Be Heeded
- Rapid ETF Growth: The Roundhill Memory ETF has amassed $10 billion in assets since its April 2 launch, making it one of the fastest-growing ETFs in history, reflecting strong investor interest in the memory sector driven by AI demand.
- Year-to-Date Returns: In just seven weeks, the ETF has generated a remarkable 90% return, with shares reaching $52.82, indicating robust performance from memory stocks like Micron and Sandisk, and highlighting the accelerating demand for memory technology.
- Concentration Risk: The ETF's portfolio is highly concentrated, with the top three holdings (SK Hynix, Micron, Samsung) accounting for 74%, significantly increasing its risk compared to a typical diversified ETF, necessitating caution from investors.
- Derivatives Warning: The ETF employs swap agreements and derivatives to amplify returns, including a roughly 9% swap in Micron, which may enhance gains in a bull market but also heightens risks during downturns, urging investors to remain vigilant.
See More
Roundhill Memory ETF Surges with 98% Returns
- Outstanding ETF Performance: The Roundhill Memory ETF has achieved a remarkable 98% return since its launch in April, showcasing its strong performance in memory chip stocks and attracting significant investor interest.
- Rapid Asset Accumulation: In just seven weeks, the ETF has amassed $10 billion in assets, making it one of the fastest-growing new ETFs in history, reflecting the strong demand for memory stocks in the market.
- Concentration Risk: The Roundhill Memory ETF's portfolio is highly concentrated, with approximately 74% of its assets in the top three holdings—SK Hynix, Micron, and Samsung—resulting in significantly higher investment risks compared to a typical diversified ETF.
- Market Volatility Warning: While the ETF has performed exceptionally well amid strong growth in the memory market, its strategy of using swap agreements and derivatives to amplify returns may also exacerbate losses during market downturns, necessitating cautious allocation by investors.
See More
Memory Supercycle: Tech Stocks Surge Amid AI Boom
- Tech Stock Surge: Despite inflation and geopolitical concerns, the Nasdaq 100 Index ETF has surged 30% since late March, indicating strong performance in the current bull market and likely continued investor interest.
- Memory Demand Surge: The rapid advancement of AI technology has led to skyrocketing global demand for memory, with analysts predicting severe supply shortages for the next two years, granting Micron (MU) and SanDisk (SNDK) unprecedented pricing power and significantly boosting their earnings outlook.
- Market Leaders' Stellar Performance: Micron and SanDisk are termed 'true market leaders,' with Micron's stock rising 851% and SanDisk soaring 4,185% over the past year, showcasing their robust growth potential amid the AI boom.
- Investor Focus on Climactic Moves: As stock prices explode, market investors are turning their attention to potential climactic moves for Micron and SanDisk, with history suggesting that such stocks typically end with strong gains, potentially yielding massive profits in a short timeframe.
See More
Sandisk Reports Strong Growth Amid AI Boom
- Significant Revenue Growth: Sandisk reported $5.95 billion in revenue for Q3 FY2026, marking a 97% sequential increase and a 251% year-over-year growth, with guidance suggesting a midpoint of $8 billion for Q4, indicating a 34.5% sequential growth.
- Sustained Market Demand: Despite the cyclical nature of the memory chip industry, CEO David Goeckeler indicated that the NAND flash memory market will remain undersupplied at least through 2027, providing strong support for the company's growth in the coming years.
- AI Industry Driving Growth: With Grand View Research projecting a 30.6% CAGR for the AI sector, Sandisk is poised to benefit from robust demand from tech giants like Amazon and Meta, who are investing heavily in memory chips to maintain a competitive edge.
- Investor Confidence Boosted: Sandisk's stock has surged nearly 4000% over the past year, reflecting strong market confidence in its growth potential, although investors should remain cautious of cyclical risks, the current demand trends present a favorable outlook for the company.
See More
Barclays Upgrades Sandisk, Sees 45% Upside Potential
- Rating Upgrade: Barclays upgraded Sandisk's stock from equal weight to overweight and raised its price target from $1,200 to $2,300, indicating a 45% upside from Tuesday's close, reflecting strong confidence in the company's future performance.
- Surging Demand: Sandisk shares have skyrocketed 4,063% over the past year, driven by a surge in memory demand, and are likely to continue rising as memory hardware supplies remain constrained, further solidifying its market position.
- New Business Model: Sandisk has introduced a new business model to capitalize on strong memory demand, outlining clear remaining performance obligations and financial guarantees loaded with prepayments, enhancing customer supply visibility and providing the company with more stable revenue and market outlook.
- Optimistic Industry Outlook: Barclays analysts noted that the memory/storage sector is the most attractive vertical outside of accelerators, with supply-demand imbalances expected to persist through 2027, further driving price increases and transforming the industry landscape.
See More
U.S. Stock Futures Rise on Sustained AI Momentum
- Market Optimism: U.S. stock futures extended gains on Wednesday, buoyed by sustained AI-driven momentum, while investors remained cautiously optimistic about a potential deal between the U.S. and Iran, despite recent U.S. strikes near the Strait of Hormuz that Iran condemned.
- Strong Index Performance: As of 04:42 a.m. ET, Dow E-minis rose by 195 points, or 0.39%; S&P 500 E-minis increased by 21 points, or 0.28%; and Nasdaq 100 E-minis climbed by 134 points, or 0.45%, reflecting growing confidence in AI's impact on the market.
- Earnings Support: A robust earnings season and expectations of approximately 29% year-on-year growth in Q1 have fueled the rally on Wall Street, with both the S&P 500 and Nasdaq closing at record highs on Tuesday, indicating strong market confidence in future growth.
- Fed Policy Expectations: Markets are set to focus on Thursday's personal consumption expenditures (PCE) index data, which could provide crucial insights into the monetary policy direction under new chair Kevin Warsh, with expectations that the Fed will maintain rates steady for the remainder of the year, while some are pricing in a 25 bps hike in December.
See More
Memory Stock ETF Surges Rapidly, Risks Must Be Heeded
- Rapid ETF Growth: The Roundhill Memory ETF has amassed $10 billion in assets since its April 2 launch, making it one of the fastest-growing ETFs in history, reflecting strong investor interest in the memory sector driven by AI demand.
- Year-to-Date Returns: In just seven weeks, the ETF has generated a remarkable 90% return, with shares reaching $52.82, indicating robust performance from memory stocks like Micron and Sandisk, and highlighting the accelerating demand for memory technology.
- Concentration Risk: The ETF's portfolio is highly concentrated, with the top three holdings (SK Hynix, Micron, Samsung) accounting for 74%, significantly increasing its risk compared to a typical diversified ETF, necessitating caution from investors.
- Derivatives Warning: The ETF employs swap agreements and derivatives to amplify returns, including a roughly 9% swap in Micron, which may enhance gains in a bull market but also heightens risks during downturns, urging investors to remain vigilant.
See More
Roundhill Memory ETF Surges with 98% Returns
- Outstanding ETF Performance: The Roundhill Memory ETF has achieved a remarkable 98% return since its launch in April, showcasing its strong performance in memory chip stocks and attracting significant investor interest.
- Rapid Asset Accumulation: In just seven weeks, the ETF has amassed $10 billion in assets, making it one of the fastest-growing new ETFs in history, reflecting the strong demand for memory stocks in the market.
- Concentration Risk: The Roundhill Memory ETF's portfolio is highly concentrated, with approximately 74% of its assets in the top three holdings—SK Hynix, Micron, and Samsung—resulting in significantly higher investment risks compared to a typical diversified ETF.
- Market Volatility Warning: While the ETF has performed exceptionally well amid strong growth in the memory market, its strategy of using swap agreements and derivatives to amplify returns may also exacerbate losses during market downturns, necessitating cautious allocation by investors.
See More
Memory Supercycle: Tech Stocks Surge Amid AI Boom
- Tech Stock Surge: Despite inflation and geopolitical concerns, the Nasdaq 100 Index ETF has surged 30% since late March, indicating strong performance in the current bull market and likely continued investor interest.
- Memory Demand Surge: The rapid advancement of AI technology has led to skyrocketing global demand for memory, with analysts predicting severe supply shortages for the next two years, granting Micron (MU) and SanDisk (SNDK) unprecedented pricing power and significantly boosting their earnings outlook.
- Market Leaders' Stellar Performance: Micron and SanDisk are termed 'true market leaders,' with Micron's stock rising 851% and SanDisk soaring 4,185% over the past year, showcasing their robust growth potential amid the AI boom.
- Investor Focus on Climactic Moves: As stock prices explode, market investors are turning their attention to potential climactic moves for Micron and SanDisk, with history suggesting that such stocks typically end with strong gains, potentially yielding massive profits in a short timeframe.
See More
