Stocks of Sandisk (SNDK +11.98%) have soared through 429% in 2026 already, fueled through the fantastic call for for NAND flash garage chips from synthetic intelligence (AI) information facilities and edge units in a position to working AI workloads.
The high-flying tech inventory were given any other shot within the arm following the discharge of fiscal 2026 third-quarter effects (for the 3 months ended April 3) on April 30. Sandisk inventory jumped 8% because it very easily beaten Wall Boulevard’s expectancies and delivered better-than-expected steering.
Even higher, there’s abundant proof suggesting that the red-hot enlargement that Sandisk has been playing is not going to leave anytime quickly. In truth, there’s a just right likelihood Sandisk inventory will contact $4,000 within the subsequent 12 months, making it one of the most best shares to shop for and hang at the moment. Let’s have a look at why that can be the case.
Symbol supply: The Motley Idiot
Sandisk’s remarkable enlargement is poised to proceed
Sandisk’s fiscal Q3 earnings jumped through a whopping 3.5 occasions 12 months over 12 months to $5.95 billion, neatly above the $4.7 billion consensus estimate. The ground-line enlargement used to be much more spectacular. Sandisk reported adjusted profits of $23.41 in step with proportion, an enormous development over the prior-year duration’s loss in step with proportion of $0.30.
Nowadays’s Exchange
(11.98%) $150.46
Present Value
$1406.32
Key Knowledge Issues
Marketplace Cap
$208B
Day’s Vary
$1286.13 – $1418.88
52wk Vary
$33.13 – $1418.88
Quantity
21M
Avg Vol
18M
Gross Margin
56.04%
Analysts would have settled for $14.50 in step with proportion in profits. It is value noting that Sandisk had guided for $13 in profits in step with proportion on earnings of $4.6 billion for the former quarter. On the other hand, the desire for extra garage in AI information facilities and the shift towards top rate smartphones and private computer systems with upper garage wishes — to lend a hand them run AI workloads in the community — has supercharged the call for for Sandisk’s merchandise.
Edge units, which come with smartphones and PCs, produced 62% of Sandisk’s best line remaining quarter. The phase’s earnings shot up 118% sequentially, and it’s simple to look why. Marketplace analysis company TrendForce estimates that the common garage capability in smartphones may just building up through 4.8% this 12 months, and that’s the reason regardless of the large bounce in NAND flash garage costs.
Top class smartphones are riding this enlargement. Apple, as an example, has doubled the minimal garage capability in its newest iPhone 17 fashions to 256 gigabytes (GB). TrendForce notes that the 128 GB garage configuration in Android smartphones may just vanish through the top of 2026 to enhance native AI processing. A equivalent state of affairs is unfolding within the PC marketplace, as working AI fashions in the community calls for extra information.
Counterpoint Analysis expects generative AI smartphone shipments to extend at an annual fee of 26% thru 2030. In the meantime, Fortune Industry Insights expects the AI PC marketplace to clock an annual enlargement fee of 20% thru 2034. The secular enlargement of those finish markets must be sure forged enlargement for Sandisk’s edge units phase in the end.
However, information middle consumers are coming into into long-term delivery agreements with Sandisk. The corporate signed 3 long-term contracts remaining quarter, valued at $42 billion. Sandisk notes that those contracts lift other intervals, with the longest one working for 5 years. Importantly, Sandisk has already signed two new long-term contracts within the present quarter, indicating that its earnings pipeline is getting more potent.
So it is simple to look why analysts have considerably enhanced their earnings enlargement expectancies from Sandisk.
SNDK Earnings Estimates for Present Fiscal Yr information through YCharts
Any other necessary level value noting is that there is not sufficient delivery to be had to satisfy the flash garage call for in smartphones, PCs, and knowledge facilities. This scarcity is why the cost of NAND flash reminiscence is projected to leap through a whopping 234% in 2026, consistent with Gartner. This pattern of upper costs is not going away anytime quickly, as NAND flash is anticipated to stay in brief delivery till 2028.
In all, the favorable demand-supply dynamics will be sure that Sandisk’s extra special profits enlargement continues within the subsequent fiscal 12 months as neatly, paving the best way for the inventory to jump upper.
Why the inventory is also headed to $4,000
Sandisk has guided for $8 billion in earnings and $31.00 in profits in step with proportion for the present quarter, obliterating the consensus estimate of $6.49 billion in earnings and $22.70 in step with proportion in profits. The steering issues towards exponential enlargement over the year-ago duration’s earnings of $1.90 billion and altered profits of $0.29 in step with proportion.
The upbeat steering explains why analysts have considerably raised their profits expectancies for Sandisk.
SNDK EPS Estimates for Present Fiscal Yr information through YCharts
Sandisk can weigh down the ones expectancies, because it has already delivered $30.82 in adjusted profits in step with proportion within the 9 months of the present fiscal 12 months, and it expects to clock $31 in step with proportion within the present quarter on my own.
Assuming Sandisk’s profits are in step with the marketplace’s expectancies of $168 in step with proportion within the subsequent fiscal 12 months (which is able to result in June 2027), and it trades at 22 occasions profits at the moment, in step with the S&P 500 index’s ahead profits more than one, its inventory value may just achieve nearly $4,000.
That will be a 3x bounce from $1,406 on Might 5. For the reason that Sandisk is buying and selling at simply 23 occasions ahead profits at the moment, buyers are getting a super deal in this AI inventory, particularly making an allowance for that it might ship larger features than mentioned above if the marketplace makes a decision to praise it with a top rate valuation.
