Key Highlights
- Shares of SanDisk (SNDK) advanced 5.2% on Thursday, closing at $821.68
- Bernstein’s Mark Newman elevated his price target to $1,250 from $1,000, establishing the highest target on the Street
- A bullish scenario outlined by Newman projects the stock could reach $3,000
- Cantor Fitzgerald upgraded its target to $1,000 from $800, keeping its Overweight stance
- The stock has delivered a 2,567% return over the trailing 12 months, dwarfing the S&P 500’s 29% advance
Shares of SanDisk experienced a 5.2% gain on Thursday, reaching $821.68, continuing a remarkable rally that has significantly outperformed broader market indices. The momentum gained strength following Bernstein analyst Mark Newman’s decision to establish a $1,250 price target, representing the most bullish Wall Street projection for the memory manufacturer.
The revised target suggests approximately 60% potential appreciation from Wednesday’s close of $780.90. Newman maintains an Outperform rating on the shares.
Newman’s bullish stance centers on memory market dynamics. His analysis suggests the market has failed 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,” he wrote.
His research also presents an aggressive “blue-sky” projection placing shares at $3,000. This scenario applies an elevated valuation multiple to optimistic earnings forecasts.
Bernstein’s base case projects SanDisk will deliver $144 per share in fiscal year 2027 earnings, while the bull case scenario estimates $224 per share.
Multiple Analysts Raise Expectations
Cantor Fitzgerald’s C.J. Muse joined the chorus of bullish calls Thursday, increasing his price objective to $1,000 from $800 while maintaining an Overweight rating.
Muse emphasized persistent demand strength and anticipates the supply/demand imbalance will continue until at least mid-2028. “Demand remains robust, and we see the supply/demand imbalance extending into likely mid-CY28 earliest,” he said.
NAND pricing dynamics represent a critical factor driving these upgraded forecasts. Pricing has accelerated beyond initial expectations, prompting analysts to reconsider the durability of the current cycle.
UBS data revealed DDR memory prices jumped an average of 95% in Q1 compared to the previous quarter, while NAND flash prices increased 80%.
Responding to TurboQuant Concerns
Memory sector stocks experienced pressure last month following Alphabet‘s unveiling of its TurboQuant compression technology. Research from Google indicated the algorithm reduced key value memory requirements in AI models by at least six times, triggering investor anxiety.
Newman dismissed these concerns as excessive, referencing Jevons paradox — the economic principle suggesting that improved efficiency and lower costs typically drive increased total demand rather than decreased consumption.
SanDisk has delivered a remarkable 2,567% gain over the past year. By comparison, Micron Technology (MU) has returned 473% during the same timeframe. The S&P 500 has risen 29%.
Current Wall Street consensus rates SNDK as a Moderate Buy, reflecting 11 Buy recommendations and 3 Hold ratings issued in the past three months. The consensus price target of $771.54 trades modestly below present levels.
Investor attention will focus on SanDisk’s fiscal Q3 2026 earnings report scheduled for April 30, which will provide critical insights into pricing momentum and demand conditions.
