TLDR
- SanDisk (SNDK) soared by 11.6% on Monday, outperforming the S&P 500; the stock has climbed 148% year-to-date and 921% over the past twelve months.
- In Q2 2026, SanDisk’s revenue reached $3 billion, a 31% sequential increase, with EPS at $6.20 — more than twice the Street’s estimate of $3.62.
- For Q3 2026, SanDisk provided robust guidance: EPS between $12 and $14, and revenue ranging from $4.40 to $4.80 billion.
- BNP Paribas assigns SNDK an “Overweight” rating with a $650 price target; the analyst consensus is “Moderate Buy” with a mean target of $700.94.
- Nomura is even more optimistic, forecasting SanDisk could double data-center storage chip prices in Q1 2026. The bank anticipates the structural NAND shortage will continue until 2028.
On Monday, SanDisk (SNDK) led the S&P 500 with an 11.6% gain, lifting memory and storage stocks after a period of decline. Micron (MU) rose 5% and Western Digital (WDC) advanced nearly 7% on the same day.
Sandisk Corporation, SNDK
Year-to-date, SNDK has increased by 148%. Over the past twelve months, the stock has soared an astonishing 921%. The Monday rebound indicates investors saw the recent dip as an opportunity to buy rather than a cause for concern.
The foundation for that confidence is a series of strong recent figures. In Q2 2026, SanDisk reported revenue of $3 billion, a 31% increase from the previous quarter. The Datacenter segment was the standout, growing 64% quarter-over-quarter to $440 million.
The EPS for the quarter stood at $6.20 — significantly above the Wall Street estimate of $3.62, and more than five times the previous quarter’s figure.
Strong Guidance Ahead
For Q3 2026, SanDisk projected EPS between $12 and $14 and revenue between $4.40 and $4.80 billion. The midpoint of that revenue range would equate to approximately 170% year-over-year growth.
Operating cash flow for Q2 was $1 billion, an increase from just $95 million the previous quarter. The company concluded the period with $1.5 billion in cash, compared to only $20 million in short-term debt.
Valuation remains reasonable by sector standards. SNDK trades at a forward P/E of 13.24 and a forward P/CF of 15.13 — both below sector medians of 21.20 and 17.65.
The bull case is based on NAND pricing and structural supply tightness. BNP Paribas estimates NAND contract prices could surge 55% quarter-over-quarter in Q1, driven by suppliers redirecting capacity toward enterprise storage products. The firm assigns SNDK an “Overweight” rating with a $650 price target, suggesting around 23% upside from current levels.
Nomura is even more optimistic, forecasting SanDisk could double data-center storage chip prices in Q1 2026. The bank anticipates the structural NAND shortage will continue until 2028.
Manufacturing and Product Edge
SanDisk recently expanded its joint venture with Kioxia (KXIAY), allocating $1.17 billion for additional manufacturing services from 2026 to 2029. This secures extra capacity without the full expense of constructing new fabs.
In terms of products, SanDisk’s 256TB UltraQLC NVMe SSD — built on BiCS8 QLC NAND — nearly doubles the capacity of Micron’s 128TB offering. The BiCS8 architecture provides 4.8 Gb/s I/O speeds and approximately 30% lower power consumption than Samsung’s traditional designs.
DRAM prices are also on the move. BNP Paribas estimates DRAM average selling prices could jump 90% quarter-over-quarter in Q1 2026, followed by a further 6% increase in Q2 as AI server demand exacerbates the supply-demand imbalance.
Among 21 analysts covering SNDK, 14 have a “Strong Buy” rating, one has a “Moderate Buy,” and six have a “Hold” rating. The mean price target stands at $700.94, suggesting around 32% upside from current levels.
Micron is set to report Q2 FY26 earnings on March 18, with most analysts expecting another strong quarter due to rising DRAM and NAND prices.
