SanDisk Stock Draws Analyst Optimism After Selloff

SanDisk Corporation (SNDK) stock has attracted fresh bullish research despite a steep sector-driven pullback, with sell-side analysts raising price targets and citing tight NAND supply and AI data-center demand ahead of the company’s fiscal fourth-quarter earnings report.

Analysts Maintain Bullish Views Amid Sector Pullback

SanDisk, a flash-storage and NAND memory manufacturer listed on the Nasdaq Global Select Market, had a market capitalization near $275.2 billion on about 148.1 million shares outstanding as of early July 2026. Several sell-side firms have raised price targets and maintained bullish ratings, arguing that consensus still underestimates the company’s earnings potential due to tight NAND supply, strong AI data-center demand, and long-term supply agreements.

Goldman Sachs increased its price target to $2,200 and kept a Buy rating, projecting calendar 2026 earnings per share (EPS) materially above Street consensus. Bernstein holds an Outperform rating with a $3,000 target, while Wedbush reaffirmed its Outperform stance, citing strong end-market dynamics and firm pricing for chips and solid-state drives.

Selloff Impact and Valuation Outlook

The shares have fallen more than 30% from their all-time high, including a 14% drop on July 2 and further declines around July 7, amid a sector rotation out of AI and chip stocks. This followed a remarkable run: over the prior year, SanDisk’s stock rose roughly 30-fold, from about $60 to $1,800.

Fiscal third-quarter 2026 revenue nearly doubled to $5.95 billion, and non-GAAP gross margin reached 78.4%, reflecting an acute shortage of NAND flash that helped drive the stock’s earlier gains. Management expects favorable pricing and demand trends tied to AI infrastructure to persist through 2026 and beyond.

Post-selloff valuation models extrapolate company guidance for fourth-quarter fiscal 2026 EPS in the range of $30 to $33 and a consensus first-quarter fiscal 2027 EPS near $34. This builds to an annualized forward EPS of about $135 and an implied forward price-earnings multiple near 12 times. Analysts interpret this as the market pricing a base case of tight supply and contracted revenue rather than an elevated AI premium.

SanDisk said in an investor-relations notice on July 9 that it will report fiscal fourth-quarter and full-year 2026 results on August 5 and host a conference call. Analysts who raised targets say those estimates position the shares for event-driven moves into that report.