Analysts lift Sandisk price targets on AI storage demand and strong earnings
The company reported a 251% surge in revenue and a zero-debt balance sheet, with Wall Street consensus rating the stock a “Strong Buy” despite recent volatility.
Bank of America, Mizuho, and Cantor Fitzgerald have raised their price targets for Sandisk, citing sustained demand for artificial intelligence-driven storage and constrained NAND supply. The upgrades follow the company’s third-quarter financial results, which revealed revenue of $5.95 billion, a 251% increase year-on-year, and adjusted earnings per share of $23.41. The analysts highlighted that the memory market remains tight, positioning Sandisk as a primary beneficiary of the sector’s growth.
Bank of America lifted its 12-month price target to $2,100 from $1,550, while Cantor Fitzgerald raised its target to $2,900 and Mizuho to $2,200. These moves reflect growing confidence in the company’s ability to capitalise on the shift toward data-center storage. Wall Street consensus for Sandisk is now a “Strong Buy” based on 22 analysts, with an average price target of $1,863.06.
Sandisk’s third-quarter performance underscored the strength of its business model following its 2025 spinoff from Western Digital. The company reported a zero-debt balance sheet and generated $2.99 billion in free cash flow. Management guided for next-quarter revenue between $7.75 billion and $8.25 billion, with adjusted EPS expected between $30 and $33, figures that exceeded analyst expectations.
CEO David Goeckeler described the latest quarter as a “fundamental inflection point” as the company transitions towards a higher-value data-center business. Sandisk has signed multiple multiyear customer agreements and is preparing high-bandwidth flash products for later in 2026. Bank of America analyst Wamsi Mohan also lifted his fiscal 2027 revenue estimate to $44 billion and EPS estimate to $188.
Despite the stock surging more than 660% in 2026, it experienced an 11% drop on June 5 before rebounding 5% to $1,642 on June 8. The company authorised a new share buyback program and ended the period with more than $3.73 billion in cash and equivalents. The market continues to view Sandisk as a direct bet on AI storage demand, with the stock trading at 25.7 times forward earnings, in line with the broader semiconductor sector.
