SanDisk Stock Declines Amid Short Squeeze Risks and Supply Shortages

Written by Emily J. Thompson, Senior Investment Analyst

SNDK-5.88%

WDC-2.84%

Source: stocktwits

Updated: 1h ago

0mins

Source: stocktwits

Stock Price Decline: SanDisk's stock fell 1.5% in early trading on Monday, continuing a nearly 6% drop from Friday, reflecting profit-taking pressure and concerns over potential short squeeze risks in the market.
Analyst Price Target Surge: Wedbush raised its price target for SanDisk from $260 to $600, highlighting that the stock has skyrocketed 1,178% since its independent trading began in February 2024, attracting increased investor attention.
Rising Short Interest: Short interest in SanDisk has climbed to 6%, the highest level in nearly a year, with S3 Partners indicating that the buildup in short positions could trigger a short squeeze, further driving up the stock price.
Bullish Market Sentiment: Despite the stock's decline, retail investor sentiment towards SanDisk remains 'bullish', indicating ongoing expectations for strong demand and supply constraints in the memory chip industry.

SNDK

$473.83+Infinity%1D

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

Citi

NULL -> Buy

upgrade

$280 -> $490

2026-01-20

Reason

Citi

Price Target

$280 -> $490

AI Analysis

2026-01-20

upgrade

NULL -> Buy

Reason

Citi raised the firm's price target on SanDisk to $490 from $280 and keeps a Buy rating on the shares. The firm adjusted targets in the technology hardware group as part of its 2026 outlook. Citi believes hyperscaler data center spending "remains robust," which is driving demand for power, storage, connectors, and fiber.

Evercore ISI

Outperform

maintain

$190 -> $230

2026-01-16

Reason

Evercore ISI

Price Target

$190 -> $230

2026-01-16

maintain

Outperform

Reason

Evercore ISI raised the firm's price target on Western Digital (WDC) to $230 from $190 and keeps an Outperform rating on the shares. The firm told investors that Western Digital's remaining 5% stake in SanDisk (SNDK) is likely to be monetized in the coming weeks as the companies approach the one-year anniversary of their separation. Evercore expects proceeds to be used to further reduce debt on the balance sheet with excess capital returned to shareholders via dividend and share repurchase program. Assuming Western Digital deploys approximately 80% of this to share repurchases, the firm anticipates the company could see 3%-4% EPS upside.

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Mizuho

Outperform

maintain

$250 -> $410

2026-01-09

Reason

Mizuho

Price Target

$250 -> $410

2026-01-09

maintain

Outperform

Reason

Mizuho raised the firm's price target on SanDisk to $410 from $250 and keeps an Outperform rating on the shares. The firm adjusted targets in the semiconductors and semiconductor capital equipment group as part of its 2026 outlook. Mizuho sees continued upside for the group in 2026 due to "attractive valuations," but more modest than 2025. The analyst' top sectors in 2026 are AI accelerators and wafter fab equipment, Optical, and memory, while the firm remains cautious on electric vehicles, autos and analog as well as computers and handsets. Mizuho's top picks for 2026 are Nvidia, Lumentum and Broadcom.

JPMorgan

Neutral

initiated

$235

2025-12-08

Reason

JPMorgan

Price Target

$235

2025-12-08

initiated

Neutral

Reason

JPMorgan initiated coverage of SanDisk with a Neutral rating and $235 price target. The firm says Sandisk offers leverage to the artificial intelligence-driven enterprise solid state disk "supercycle" with a "structurally advantaged" cost base via its Kioxia joint venture. However, JPMorgan views the company's current pricing power as a cyclical peak rather than a structural reset.

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.