Core Insights - SanDisk's stock is experiencing significant gains due to a tightening supply-demand landscape for memory chips, particularly NAND, which is expected to drive earnings and margins to cycle highs [2][4] - Goldman Sachs forecasts a substantial undersupply of DRAM and NAND memory in 2026 and 2027, with DRAM undersupply projected at approximately 4.9% and 2.5% respectively [2] - The demand for server-related memory is surging, driven by the increasing need for memory in AI servers and data centers, projected to account for over 50% of total DRAM demand in the coming years [3] Company Positioning - SanDisk is identified as a key player in the NAND market, with expectations for meaningful upward revisions to earnings as supply remains tight [4] - The company is one of the five largest suppliers of NAND flash memory semiconductors globally and is vertically integrated, producing most of its flash chips in Japan through a joint venture with Kioxia [6] - SanDisk's manufacturing capabilities and market position will be crucial as demand for NAND is expected to rise sharply due to increasing enterprise storage needs and the growth of AI applications [7] Earnings Outlook - SanDisk is expected to provide its next financial update on May 6, 2026 [8] - The earnings per share (EPS) estimate is projected at $10.58, a significant increase from a loss of $0.30 year-over-year [10] - Revenue estimates are set at $4.37 billion, up from $1.70 billion year-over-year [10] Stock Performance - SanDisk shares have surged over 1,500% over the past year, climbing from a low of $29.62 to a high of $695.51, with strong bullish momentum reflected in trading above its 20-, 50-, and 200-day moving averages [5] - The stock was up 10.53% at $598.92 at the time of publication [11] Analyst Consensus - The stock carries a Buy Rating with an average price target of $512.76, with recent analyst upgrades raising targets to $750.00 by Citigroup and Barclays [9][10]
SanDisk Stock Surges On Memory Shortage Outlook