Sandisk (SNDK) Stock Surges 166% on AI Data Center Demand for Flash Storage

TLDR

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Sandisk (SNDK) stock has surged 166% in 2026 driven by AI data center demand for flash memory storage
Q2 fiscal 2026 revenue climbed 61% to $3 billion with earnings up more than 5x year-over-year
NAND flash supply shortage enables Sandisk to double enterprise SSD prices this quarter
Analysts forecast earnings growth from $2.99 per share in fiscal 2025 to $39.45 in fiscal 2026
High-bandwidth memory market expected to reach $100 billion by 2028, up from $35 billion in 2025

Sandisk stock has become one of 2026’s top performers with gains of 166% year-to-date. The flash memory manufacturer benefits from surging AI infrastructure investments that are creating unprecedented demand for storage solutions.

Sandisk Corporation, SNDK

The company’s evolution parallels Nvidia’s trajectory during the early AI boom. Sandisk dominated consumer flash drives in the 2000s but has now pivoted to enterprise solid-state drives and NAND flash memory for data centers.

Explosive Revenue and Earnings Growth

Second-quarter fiscal 2026 results showcased the company’s momentum. Revenue reached $3 billion, up 61% year-over-year. Earnings jumped more than fivefold during the same period.

The performance reflects a severe supply shortage in the NAND flash industry. AI data centers require massive amounts of flash storage for training datasets and workloads. Generative AI smartphones and PCs also demand higher storage capacity.

Sandisk’s fabrication plants operate at full capacity. Yet demand continues to exceed supply. Hyperscalers are paying premium prices to secure additional storage capacity.

The company will reportedly double prices for enterprise 3D NAND solid-state drives in the current quarter. With 2026 NAND flash manufacturing capacity sold out, further price increases appear likely.

Management’s fiscal Q3 guidance calls for earnings of $13 per share at the midpoint. This compares to a loss of $0.30 per share in the year-ago quarter.

Market Opportunity and Valuation

The high-bandwidth memory market totaled $35 billion last year. Micron Technology projects 40% compound annual growth through 2028, reaching $100 billion.

Sandisk generated $9 billion in trailing twelve-month revenue. The company has substantial room to grow within the expanding AI memory market.

Competition includes Micron Technology, Samsung, and SK Hynix. However, Sandisk’s positioning in AI infrastructure provides first-mover advantages similar to Nvidia’s early GPU dominance.

The Magnificent Seven tech companies plan $680 billion in capital expenditures this year. While GPU purchases capture attention, downstream memory storage demand follows as AI workloads scale.

Analysts expect fiscal 2026 earnings of $39.45 per share, up from $2.99 in fiscal 2025. Fiscal 2027 estimates point to $73.69 per share.

The company delivered $7.55 per share in earnings during the first half of fiscal 2026. Consensus targets suggest $31.90 per share for the second half ending in June.

Pricing Power Continues

Sandisk trades at 15 times forward earnings. This represents a discount to the Nasdaq-100 index’s forward multiple of 24.7.

If the stock reaches 20 times earnings by year-end based on calendar 2026 earnings estimates of $70.07 per share, the price could hit $1,401. That implies potential upside of 158% from current levels.

The stock closed at $625.78 with a market cap of $92 billion. Trading volume reached 758,000 shares versus an average of 16 million.

Sandisk’s first-half fiscal 2026 performance demonstrates strong execution. Full manufacturing capacity and pricing power position the company for continued growth as AI infrastructure spending accelerates throughout 2026.

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