Memory Stocks Surge: Sandisk Price Target Raised to $600
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 24 2026
0mins
Should l Buy SNDK?
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.
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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: 724.630
Low
220.00
Averages
283.69
High
410.00
Current: 724.630
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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- Market Supply-Demand Imbalance: With skyrocketing demand for NAND flash from AI data centers, the AI storage market is projected to grow nearly 800% between 2025 and 2035, potentially increasing competitive pressure on Sandisk.
- Price Volatility Impact: Morgan Stanley analysts suggest that a potential drop in memory prices could actually benefit Sandisk by stimulating AI consumption, as lower costs may attract more customers to their products.
- Earnings Outlook Improvement: Despite challenges, Sandisk's earnings per share are expected to surge from $2.99 last year to $40.27, indicating its potential profitability amid rising AI demand.
See More
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- 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.
See More
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- Optimistic Tech Outlook: Despite overall market underperformance, Wall Street analysts have raised forward earnings estimates for the technology sector from 34% in December to 45%, suggesting that investors may seek buying opportunities during market declines, particularly in stocks like Micron and Nvidia.
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