TLDR
- Sandisk (SNDK) stock surged 166% in 2026 as AI data centers drive unprecedented demand for flash memory storage solutions
- The company’s Q2 fiscal 2026 revenue jumped 61% year-over-year to $3 billion while earnings increased over 5x
- NAND flash supply shortage has led Sandisk to reportedly double prices for enterprise 3D NAND solid-state drives this quarter
- Analysts expect Sandisk’s earnings to jump from $2.99 per share in fiscal 2025 to $39.45 in fiscal 2026
- The high-bandwidth memory market is projected to grow from $35 billion to $100 billion by 2028 at a 40% compound annual growth rate
Sandisk stock has emerged as one of 2026’s biggest winners. The flash memory manufacturer has posted gains of 166% year-to-date as hyperscalers race to build AI infrastructure.
The company’s transformation mirrors Nvidia’s early AI boom. While Sandisk once dominated the consumer flash drive market in the early 2000s, it has pivoted to become a critical supplier of enterprise solid-state drives and NAND flash memory for data centers.
The shift is paying off in a big way. Sandisk reported second-quarter fiscal 2026 revenue of just over $3 billion, up 61% year-over-year. Earnings increased more than fivefold during the same period.
Supply Shortage Drives Pricing Power
The NAND flash industry faces a severe supply crunch. AI data centers consume massive amounts of flash storage to support training datasets and workloads. Generative AI-capable smartphones and PCs also require higher average storage capacity.
Sandisk’s fabrication plants are running at full capacity. Yet demand continues to outpace supply. Hyperscalers are willing to pay premiums to secure additional storage capacity.
The company will reportedly double prices for enterprise-focused 3D NAND solid-state drives in the current quarter. With 2026 NAND flash manufacturing capacity already sold out, prices could climb even higher.
Management guided for fiscal Q3 earnings of $13 per share at the midpoint. That represents a dramatic turnaround from the year-ago loss of $0.30 per share.
Analysts project full-year fiscal 2026 earnings of $39.45 per share. That’s up from just $2.99 per share in fiscal 2025. Fiscal 2027 estimates point to $73.69 per share.
The company delivered $7.55 per share in earnings during the first half of fiscal 2026. If Sandisk hits the consensus target for the second half, it will generate $31.90 per share in earnings by June.
Market Dynamics Favor Growth
The total addressable market for high-bandwidth memory reached $35 billion last year. Micron Technology expects the market to grow at a 40% compound annual rate through 2028, reaching $100 billion.
Sandisk generated only $9 billion in revenue over the last twelve months. The company has barely tapped its growth potential relative to the expanding AI memory market.
Competition remains fragmented among Micron Technology, Samsung, and SK Hynix. But Sandisk’s early positioning in AI infrastructure gives it first-mover advantages similar to what Nvidia enjoyed in GPUs.
The Magnificent Seven tech companies plan to spend $680 billion on capital expenditures this year. While GPU purchases from Nvidia and AMD grab headlines, memory storage demand follows downstream as AI workloads scale.
Sandisk trades at just 15 times forward earnings. That’s a discount to the Nasdaq-100 index’s forward multiple of 24.7. If the stock reaches 20 times earnings by year-end based on calendar 2026 earnings estimates of $70.07 per share, the price could hit $1,401. That represents potential upside of 158% from current levels.
The stock closed at $625.78 with a market cap of $92 billion. Volume reached 758,000 shares compared to an average of 16 million.
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