Key Takeaways:
- Sandisk stock hit a 52-week high of $1,600, closing up at $1,547.56.
- Shares have gained 552% year-to-date, fueled by AI data center demand.
- The company issued strong Q4 guidance, projecting revenue of $7.75-$8.25 billion.
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Sandisk stock soars 552% to 52-week high on AI demand
Sandisk Corp. (SNDK) shares surged to a 52-week high of $1,600 on May 11, part of a 552 percent year-to-date rally, as soaring demand for its memory chips in artificial intelligence applications fuels a dramatic re-rating of the company. The stock, which has comfortably outpaced the broader semiconductor sector, closed the session at $1,547.56.
"Nearly a third of fiscal 2027 revenue is already contracted, which gives a rare sense of predictability in a typically cyclical memory business," analysts at Susquehanna said, doubling their price target on the stock to $2,000 after its recent earnings report.
The rally has seen Sandisk far outpace storage peers Western Digital Corp. (WDC), Seagate Technology (STX), and Micron Technology Inc. (MU). The performance is underpinned by a 233% sequential surge in the company’s data center revenue and a non-GAAP gross margin that expanded to 78.4% in the third quarter, up from just 22.7% a year earlier. The move came as the U.S. 10-year Treasury yield held steady and the dollar showed little change.
The performance highlights a structural shift in the NAND flash market, which is transitioning from a cyclical commodity to a strategic component of AI infrastructure. With over $11 billion in financial guarantees backing long-term agreements, Sandisk is building a more predictable revenue and earnings stream, reducing historical volatility and solidifying its role at the core of the AI buildout.
AI Demand Powers Data Center Growth
Sandisk is capitalizing on a surge in demand for high-performance storage, driven by the rapid expansion of AI. The company’s data center revenues have become a primary growth engine, with hyperscalers and enterprise clients aggressively deploying its enterprise solid-state drives (SSDs) for demanding AI workloads.
Management has noted that the growing size of AI models, combined with technologies like retrieval-augmented generation (RAG), requires massive amounts of high-performance storage, placing its NAND flash products at the center of the AI hardware ecosystem. The company's leadership in BiCS8 NAND technology and a growing portfolio of QLC products are helping it meet this demand.
Strong Guidance and Analyst Upgrades
The company’s outlook reinforces the growth narrative. For the fourth quarter of fiscal 2026, Sandisk projects revenue between $7.75 billion and $8.25 billion, with non-GAAP earnings per share expected in the range of $30.00 to $33.00. The forecast for gross margin is between 79% and 81%, suggesting continued pricing power and profitability.
This guidance prompted a wave of analyst upgrades. In addition to Susquehanna, Bernstein raised its price target to $1,700, citing strong pricing and demand trends. The consensus estimate for fourth-quarter earnings has risen 76% over the past 30 days to $32.40 per share. Overall, the stock has a “Strong Buy” consensus rating from analysts.
Despite the sharp rally, Sandisk trades at 21.79 times forward adjusted earnings, a valuation that remains below the sector average and suggests that investors believe the growth has further to run. The recent sale of $870,300 in stock by director Necip Sayiner has not dented investor confidence.
This article is for informational purposes only and does not constitute investment advice.
