Memory Stocks Surge: Sandisk Price Target Raised to $600
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: seekingalpha
- Surging Market Demand: Driven by insatiable demand from data centers and AI, valuations for memory and storage manufacturers have skyrocketed, with Sandisk, Seagate, and Western Digital seeing stock price increases of nearly 1300%, 370%, and 220% respectively over the past year, indicating strong market confidence.
- Expanding Supply Gap: Analyst Matt Bryson highlights that the shortfall for hard disk drives and memory is expected to reach 200 to 300 exabytes, suggesting that supply growth may be capped at 20% over the next few years while data growth approaches 30%, leading to a persistent supply-demand gap.
- Price Target Increases: Bryson raised Sandisk's price target from $260 to $600, while also increasing targets for Seagate and Western Digital to $380 and $260 respectively, reflecting an optimistic outlook on the future profitability of these companies.
- Positive NAND Market Outlook: Bryson anticipates that the NAND market will experience price increases in the coming months, with contract spot prices expected to rise over 50% in March, which will push industry margins above historical peaks and further solidify the investment appeal of storage stocks.
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: 503.440
Low
220.00
Averages
283.69
High
410.00
Current: 503.440
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.
