The demand for storage capacity from AI data centers continues to set new records, with no signs of a slowdown in memory chip demand. NAND flash prices, in particular, are rising beyond expectations. This is precisely what has driven SanDisk's stock price to a record high. But can this rally continue? Two top analysts have just raised their price targets due to stronger-than-expected memory pricing, and the data suggests that—as long as the cycle persists—the answer is yes.
Wall Street has raised its targets on the strength of the NAND uptrend. A Bernstein analyst, Mark Newman, issued the highest target on the Street yesterday. He increased his price target for SanDisk from $1,000 to $1,250 per share, maintaining an "Outperform" rating. This implies approximately 47% upside from the stock's closing price of $780.90 on April 8. Newman's base case applies an 11x price-to-earnings multiple to an average non-GAAP EPS of $114 for fiscal years 2026 to 2029. For fiscal 2027 alone, he now forecasts EPS of $144. In a bull case—factoring in persistently higher pricing—he projects EPS of $224 and outlines a "blue sky" scenario exceeding $3,000.
An analyst from Cantor Fitzgerald, C.J. Muse, followed suit on the same day, raising his target from $800 to $1,000 while maintaining an "Overweight" rating. This still suggests 28% upside from Wednesday's closing price. Both firms cited the same catalyst: according to Bernstein's March memory tracker data, NAND average selling prices continue to accelerate upward, exceeding forecasts.
SanDisk's stock closed at $851.57 yesterday, up 9.05%, with volume of 19.8 million shares—more than double the 30-day average. This extends a gain of 2,228% over the past year.
SanDisk operates as a pure-play NAND specialist, unlike its diversified peers. For example, Micron Technology's business spans DRAM, NAND, and high-bandwidth memory. Micron reported record DRAM revenue of $10.8 billion for the first quarter of fiscal 2026, up 69% year-over-year, while NAND revenue was $2.7 billion, up 22%. This is solid performance, but SanDisk's more focused business allows it to capture the benefits of soaring NAND prices more directly.
Consider the latest data: SanDisk reported fiscal second-quarter 2026 revenue of $3.03 billion, up 61% year-over-year and 31% sequentially. Data center revenue alone reached $440 million, up 76% year-over-year, as hyperscalers heavily procure enterprise-grade solid-state drives for AI training clusters. Driven by favorable pricing, gross margins have expanded to approximately 50%. Analysts now expect third-quarter revenue to grow more than 50% sequentially based on the midpoint of guidance.
In short, when NAND prices rise 10% or more in a single quarter—as has already occurred—SanDisk's profitability grows faster because storage constitutes its entire business.
That said, memory cycles have historically been volatile. SanDisk's EPS over the past 12 months was a loss of $7.49, reflecting the cyclical weakness before the current rebound. Forward expectations look much stronger, but any slowdown in AI capital expenditure could pressure pricing by late 2027. Added capacity from new wafer fabs is also worth watching, although analysts expect supply shortages to persist into 2028. With a current market capitalization of $125.7 billion based on 148 million shares outstanding, volatility remains part of the investment profile.
In summary, Bernstein's $1,250 target and Cantor's $1,000 rating reflect tangible earnings momentum linked to measurable NAND pricing gains—not hype. Based on these updates, existing shareholders can confidently hold for a potential return of 28% to 47% over the next 12 months. New buyers should size positions according to the cycle's fluctuations, perhaps entering on a pullback below $800—but this stock might not wait. In any case, the data suggests SanDisk's pure-play NAND leverage on AI storage demand still has a long runway ahead.
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