SanDisk (NASDAQ:SNDK) stock jumped on Thursday sharply, rallying almost 9%. A convergence of positive factors lifted the sentiment in the memory industry.
Micron’s astronomical earnings, along with its bullish outlook on AI-driven NAND, and the recent price target increases by analysts, led to a massive buying of storage stocks.
SanDisk is a NAND-only flash memory manufacturer, which makes it an obvious beneficiary from the expansion of data centers and AI infrastructure.
SanDisk shares: Micron’s earnings spur rally
SanDisk’s surge on Thursday reflects multiple positive layers.
Micron reported record results for its fiscal Q1 in high-bandwidth storage and memory. Management has indicated that the supply shortage will continue well into 2026.
NAND flash prices increased by midteens percent during the last quarter, after rising high single-digit percentage in the previous period. NAND sales also rose 22% in a sequential manner.
This pricing acceleration directly translates to increased margins and revenues for SanDisk. The company derives the majority of its revenue through data centers and enterprise NAND.
SanDisk has also recently posted impressive earnings. SanDisk’s fiscal Q1 earnings, revenue and margins all exceeded expectations. The guidance provided for Q2 was also impressive.
Management guided that fourth quarter revenues would rise by 13% quarterly to $2.6 Billion, exceeding the consensus.
SanDisk’s performance, combined with analysts’ expectations of a 42% revenue increase in fiscal 2026, has positioned it as the prime beneficiary from an accelerating NAND price cycle.
Micron soared more than 6% in after-hours trade on Wednesday. Western Digital also climbed over 2%. SanDisk rose initially over 3%.
SanDisk’s trading volume increased, reflecting institutional interest and not retail speculation.
Analysts say
Wall Street’s confidence in SanDisk has risen dramatically following the recent market results.
Mark Miller, an analyst at Benchmark, cited positive trends in the NAND flash industry as a reason for Benchmark’s Buy rating on Thursday.
This $260 price target represents a 15% increase from the current level, giving investors a safety margin.
In recent weeks, multiple houses have raised their targets aggressively.
Jefferies raised its $250 price target, maintaining the Buy rating. It also pointed to the favorable pricing dynamics of memory products.
Mizuho increased its target from $250 to $250, attributing the strong pricing power of artificial intelligence servers.
Bernstein SocGen Group has raised its target price to $300. This is a result of the strong performance the company had in the quarter and structural benefits from the AI infrastructure expansion.
The consensus of analysts now has 24 Buy ratings and 13 Hold ratings with a 12-month average price target around $262.71.
Investors can monitor the major catalysts such as NAND spot price reports, quarterly industry forecasts and if prices remain elevated or continue to rise.
Investors will be watching closely for updates on SanDisk’s February earnings call regarding data center adoption trends and customer orders.
The stock of SanDisk has soared on Thursday. This post may change as the updates unfold.
