SanDisk (SNDK) had a wild June and an even wilder start to July. The stock climbed 34% last month, only to give back all of those gains — and then some — as the broader tech sector sold off hard.
As of July 7, SNDK was trading around $1,643, down roughly 31% from its June highs. The stock dropped 20.7% over just five trading days and was down another 4.9% in pre-market trading on July 8.
The June rally was largely fueled by Micron’s blowout earnings report. Micron posted an 85% gross margin and 80% operating margin in its fiscal third quarter — numbers that don’t happen often in the memory chip business.
Micron also said the memory shortage would last through 2027. That was good news for SanDisk, which makes NAND flash memory products including SSDs and USB drives.
There wasn’t much company-specific news driving SanDisk in June. The stock was essentially riding Micron’s coattails, along with a wave of bullish analyst sentiment around memory chip pricing.
Bank of America analyst Wamsi Mohan raised his SNDK price target from $1,550 to $2,100 after Micron’s report. He expects SanDisk to post $44 billion in revenue and $188 in earnings per share for 2027 — putting the stock at under 10 times forward earnings at current prices.
The July sell-off had little to do with SanDisk’s fundamentals. The broader trigger was a fresh flare-up in U.S.-Iran military tensions, with President Trump declaring the ceasefire had ended. Oil prices spiked, and tech stocks got hit across the board.
Weakness in Asian markets added to the pressure. Samsung reported better-than-expected preliminary Q2 results on July 7, driven by strong AI memory chip demand. But the stock still fell. Investors worried the AI-driven rally had already priced in most of the upside.
Memory stocks have historically been cyclical, and the market appears to be questioning how long this current upcycle can last.
Despite the pullback, analysts haven’t backed away from SNDK.
Bank of America’s Mohan raised his price target again — this time from $2,100 to $2,500, implying 54.5% upside from current levels. He kept his Buy rating and expects NAND prices to stay elevated at least through mid-2027.
Bernstein analyst Mark Newman lifted his target from $1,700 to $3,000, the most bullish call on the street, representing 85.5% upside. Newman pointed to SanDisk’s new long-term supply contracts, which include minimum price floors and require upfront customer commitments.
He estimates those contracts lock in a minimum of 29 cents per gigabyte — above the floor in Micron’s comparable deals.
On TipRanks, SNDK carries a Strong Buy consensus rating from 16 analysts: 14 Buys and 2 Holds. The average price target sits at $2,041.88, implying 26.2% upside from current levels.
Year-to-date, the stock is still up more than 581%.
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