Sandisk is experiencing a remarkable surge in stock market performance, with shares skyrocketing by an impressive 166% as of now, driven largely by an insatiable demand for its flash memory storage solutions across various sectors. Analysts note that this semiconductor stock has become a favorite among investors, particularly due to its appealing valuation in a competitive marketplace.
The company’s flash-based data storage products are increasingly essential for gaming consoles, PCs, smartphones, and other devices. This broad applicability has contributed significantly to Sandisk’s revenue growth, which soared 61% year-over-year to exceed $3 billion in the second quarter of fiscal 2026. Even more striking is the company’s earnings, which saw over a fivefold increase during the same period—a result largely attributed to a critical supply shortage in the NAND flash industry.
Artificial intelligence (AI) has emerged as a prominent factor in the demand for flash storage, with AI data centers consuming substantial quantities to manage vast datasets. This demand has further intensified with the rising storage needs in advanced smartphones and PCs. Sandisk has acknowledged that its manufacturing facilities are operating at full capacity, yet the strong demand continues to drive prices upward. This situation has prompted a strategic move by Sandisk to double the prices of its enterprise-focused 3D NAND solid-state drives in the upcoming quarter.
With the current fiscal year showing robust performance and the next fiscal year’s outlook remaining strong, analysts expect Sandisk’s earnings to rise dramatically—from $2.99 per share last year to a projected $39.45 this fiscal year. The company’s earnings in the first half of the current fiscal year reached $7.55 per share, with forecasts suggesting an additional $31.90 in the latter half.
Currently, Sandisk trades at a forward earnings multiple of just 15, positioning it at a considerable discount compared to the Nasdaq-100 index, which has a forward multiple of 24.7. Should the company achieve an earnings estimate of $70.07 per share for the fiscal year ending in 2026, and assuming a more favorable trading multiple of 20, Sandisk’s stock price could potentially rise to around $1,401—a staggering 158% increase from its current level.
In summary, Sandisk remains an attractive investment for those looking to capitalize on the burgeoning AI sector and the ongoing demand for flash storage solutions. With positive growth trends and a favorable market position, many investors believe that Sandisk’s impressive rally is set to continue throughout 2026.
