Key Highlights
- SanDisk (SNDK) shares advanced 5.2% Thursday, closing at $821.68
- Bernstein’s Mark Newman lifted his price target to a Wall Street-leading $1,250 from $1,000
- Newman presented an optimistic scenario valuing shares at $3,000
- Cantor Fitzgerald upgraded its target to $1,000 from $800 with an Overweight stance
- SNDK has skyrocketed 2,567% in the last year, crushing the S&P 500’s 29% advance
Shares of SanDisk jumped 5.2% Thursday, reaching $821.68 as the memory chipmaker extends a remarkable rally that has dwarfed broader market gains. The surge followed Bernstein analyst Mark Newman’s decision to boost his price target to $1,250 — now the highest among Wall Street analysts — from his previous $1,000 forecast.
The new target suggests approximately 60% additional upside from Wednesday’s close of $780.90. Newman maintains an Outperform rating on the shares.
Newman’s bullish stance centers on memory chip demand fundamentals. He believes investors are significantly underestimating both 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 even more aggressive “blue-sky” projection valuing SanDisk at $3,000 per share. This optimistic scenario applies elevated valuation multiples to robust earnings projections.
Bernstein’s base forecast calls for SanDisk to deliver $144 in earnings per share for FY27, while the bull case estimate reaches $224.
Wall Street Grows Increasingly Bullish
Cantor Fitzgerald’s C.J. Muse joined the chorus of optimistic analysts Thursday, raising his target to $1,000 from $800 while reaffirming an Overweight rating.
Muse highlighted persistent strong demand and anticipates the supply-demand imbalance will continue through at least mid-2028. “Demand remains robust, and we see the supply/demand imbalance extending into likely mid-CY28 earliest,” he noted.
Rising NAND pricing serves as a critical catalyst behind both analyst upgrades. Prices have accelerated beyond expectations, prompting analysts to reassess the durability and length of this favorable cycle.
UBS recently documented that DDR memory prices jumped an average of 95% quarter-over-quarter in Q1, while NAND flash prices surged 80%.
Dismissing TurboQuant Concerns
Memory sector stocks experienced volatility last month following Alphabet‘s unveiling of its TurboQuant compression technology. Google researchers claimed the innovation reduced key value memory requirements in AI models by at least six-fold, sparking investor concern.
Newman characterized market fears as “overdone,” referencing Jevons paradox — the economic principle suggesting that improved efficiency and reduced costs typically drive increased overall consumption rather than decreased demand.
SanDisk has delivered a staggering 2,567% return over the trailing twelve months. By comparison, Micron Technology (MU) has gained 473% during the same timeframe. The S&P 500 has risen 29%.
The consensus Wall Street rating on SNDK stands at Moderate Buy, with 11 Buy recommendations and 3 Hold ratings issued in the past three months. The average analyst price target of $771.54 remains modestly below current trading levels.
Investors will closely monitor SanDisk’s fiscal Q3 2026 earnings report scheduled for April 30, which should provide crucial insights into pricing momentum and demand trajectories.
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