Sandisk has had a run that most investors only dream about. A $10,000 investment at the start of 2025 would now be worth over $250,000. The stock is up around 6% today alone, sitting just under $990 — a whisker from its all-time high.
The fuel behind the rally comes down to two things: memory and solid-state drives (SSDs). AI systems are hungry for both, and Sandisk is in the middle of that feeding frenzy.
Right now, the memory market simply can’t keep up with what advanced AI chips demand. That supply crunch has pushed prices higher, and Sandisk has been one of the main beneficiaries.
Because memory capacity is stretched thin, AI companies are turning to SSDs as a secondary storage option — a workaround that has sent Sandisk’s SSD business surging.
That shows up clearly in the numbers. In its most recent quarter, Sandisk posted revenue of $3.03 billion, beating analyst estimates of $2.67 billion. Year-over-year revenue growth came in at 61%.
Earnings were even more striking. Diluted EPS hit $6.20, blowing past the $3.31 consensus. The pattern here is simple: higher demand pushes up prices, and higher prices mean profits grow faster than revenue.
Wall Street has taken notice. Arete Research upgraded SNDK to a “strong-buy” on April 13. Goldman Sachs raised its price target from $320 to $700 back in January. Both UBS and Cantor Fitzgerald have set targets at $1,000.
The consensus rating across 24 analysts is “Moderate Buy,” though the average price target sits at $752 — below where the stock trades today.
Several institutional investors have been adding exposure. Universal Beteiligungs und Servicegesellschaft mbH doubled its position in Q4, picking up an additional 17,232 units valued at roughly $7.9 million. CWM LLC and Deprince Race & Zollo also opened new positions worth $7.4 million and $39.5 million respectively.
Not everyone is piling in, though. Short interest climbed to around 9.75 million units — about 6.6% of the float — as of mid-April, pointing to growing skepticism among some traders.
At current prices, SNDK trades at 20.5 times forward earnings. That might look reasonable on its face, but Sandisk operates in a cyclical industry. When the memory supply crunch eases, pricing power fades, and earnings can fall fast.
The stock also carries a beta of 5.04 — meaning it moves roughly five times more than the broader market in either direction.
On the insider front, Director Miyuki Suzuki sold 3,500 units on February 25 at an average price of $627.53, totaling $2.19 million. That sale cut her ownership stake by 26%.
Sandisk is set to report Q1 2026 earnings soon, with analysts expecting full-year EPS of $39.01. The stock opened Monday at $989.90, just below its 52-week high of $1,002.09.
The post Sandisk (SNDK) Stock Surges as AI Demand Fuels Record Growth – Time to Buy? appeared first on CoinCentral.
