Key Highlights
- SanDisk (SNDK) shares jumped 5.2% to reach $821.68 on Thursday’s trading session
- Bernstein’s Mark Newman upgraded his price target to $1,250 from $1,000, establishing the highest target on Wall Street
- A bullish scenario presented by Newman suggests the stock could potentially reach $3,000
- Cantor Fitzgerald also increased its target to $1,000 from $800, keeping an Overweight stance
- The stock has experienced a remarkable 2,567% rally over the past year, significantly outperforming the S&P 500’s 29% increase
SanDisk shares experienced a robust 5.2% gain on Thursday, closing at $821.68, extending an impressive rally that has significantly outperformed broader market indices. The momentum followed Bernstein analyst Mark Newman’s decision to elevate his price target to $1,250 from his previous $1,000 forecast, establishing the most bullish target on Wall Street.
The upgraded target suggests approximately 60% potential upside from Wednesday’s close of $780.90. Newman maintains an Outperform rating on the stock.
Newman’s bullish outlook centers on a fundamental thesis: the memory market’s demand dynamics remain underappreciated. He believes investors are failing to properly value SanDisk’s earnings potential and the longevity of the current industry upcycle.
“We think the market is significantly undervaluing earnings power and sustainability of this cycle,” Newman stated in his research note.
Beyond his base case, Newman presented an aggressive “blue-sky” projection valuing the stock at $3,000. This ambitious target applies elevated valuation multiples to optimistic earnings forecasts.
Bernstein’s base case projects SanDisk will deliver $144 in earnings per share for fiscal year 2027, while the bull-case scenario envisions $224 per share.
Multiple Analysts Elevate Price Projections
Cantor Fitzgerald’s C.J. Muse joined the bullish chorus on Thursday, raising his price target to $1,000 from $800 while maintaining an Overweight rating on the stock.
Muse highlighted persistent strong demand and an ongoing supply/demand imbalance that he anticipates will continue through at least mid-2028. “Demand remains robust, and we see the supply/demand imbalance extending into likely mid-CY28 earliest,” Muse noted.
NAND memory pricing serves as the primary catalyst behind these optimistic revisions. Prices have accelerated beyond expectations, prompting analysts to reconsider the durability and strength of the current cycle.
UBS previously documented that DDR memory prices increased an average of 95% quarter-over-quarter in Q1, while NAND flash prices climbed 80% during the same period.
Dismissing TurboQuant Concerns
Memory sector stocks experienced volatility last month following Alphabet‘s unveiling of its TurboQuant compression technology. Google’s research team claimed the algorithm could compress key value memory in AI models by at least six-fold, triggering investor concerns.
Newman dismissed these worries as excessive, arguing the market reaction was “overdone.” He referenced Jevons paradox—an economic principle suggesting that improved efficiency and reduced costs typically drive higher overall demand rather than diminishing it.
SanDisk has delivered a staggering 2,567% return over the trailing 12 months. By comparison, Micron Technology (MU) has gained 473% during the same timeframe. The S&P 500 has advanced 29%.
The consensus rating for SNDK currently stands at Moderate Buy, with 11 Buy recommendations and 3 Hold ratings issued within the past three months. The average analyst price target of $771.54 trades slightly below current price levels.
Investors will closely monitor SanDisk’s fiscal third-quarter 2026 earnings report scheduled for April 30, which should provide crucial insights into pricing trajectories and demand fundamentals.
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