TLDR
- SanDisk (SNDK) stock hit a 52-week high of $2,354.39 on June 22 before pulling back, and is up over 700% in 2026.
- The sell-off was triggered partly by a historic drop in South Korea’s Kospi and concerns about sustainability of AI-driven memory spending.
- Morgan Stanley says SanDisk believes AI is “fundamentally changing” the NAND market, driven by growing inference demand and larger LLM context windows.
- Q3 FY2026 revenue surged 251% year-over-year to $5.95 billion, smashing the $4.55 billion Wall Street estimate.
- Q4 guidance calls for revenue of $7.75B–$8.25B, with non-GAAP EPS projected between $30–$33.
SanDisk (SNDK) stock has been one of the standout stories of 2026. After gaining over 700% year-to-date, it touched a 52-week high of $2,354.39 on June 22. Then came the sell-off.
The stock dropped sharply alongside other memory chip names, dragged down by a historic decline in South Korea’s Kospi index and fresh questions about how long AI-related memory spending can keep growing at this pace. SNDK is down around 13.6% in the latest move, and is off about 5.75% over the last five trading sessions. It was trading near $1,963.60 at the time of writing.
Even with the pullback, the stock remains up 32.8% over the last 30 days. That context matters — this is the first broad test of the AI memory trade since SanDisk’s spinoff from Western Digital in early 2025.
What’s Driving the AI Memory Story
Morgan Stanley analyst Joseph Moore said SanDisk believes AI is “fundamentally changing” the NAND market. The key driver is inference demand. As large language models require bigger key-value caches and larger context windows, DRAM alone can’t handle the load — and NAND is stepping up in the memory hierarchy to fill the gap.
Cloud computing is expected to become NAND’s largest end market before the end of this year. SanDisk’s data center segment already reflects that shift, surging 233.4% sequentially to $1.47 billion in Q3 FY2026.
Q3 results, reported April 30, were a blowout. Revenue hit $5.95 billion, up 251% year-over-year and well ahead of the $4.55 billion analyst estimate. Non-GAAP EPS came in at $23.41 versus the $14.36 consensus. Non-GAAP gross profit jumped 1,111.9% year-over-year to $4.7 billion. The company also wiped out its debt, ending the quarter with $3.7 billion in cash.
The stock climbed 3.04% on earnings day and added another 8.25% the following session.
What Comes Next
Management guided Q4 FY2026 revenue at $7.75 billion to $8.25 billion, with non-GAAP EPS of $30 to $33. Analysts are projecting Q4 EPS of $31.81, up 158,950% year-over-year.
QLC Stargate solutions — under hyperscaler qualification for over a year — are now expected to begin shipping for revenue in Q4, adding another growth layer on top of existing TLC momentum.
Despite the run, SanDisk trades at 34.13 times forward adjusted earnings and 17.17 times sales, both above industry averages. Its P/E of 64.5 compares to an industry average of 44.5. The stock is also trading roughly 12% above the average analyst price target of $1,863.06.
Of 21 analysts covering the stock, 18 rate it “Strong Buy,” one says “Moderate Buy,” and two say “Hold.” Morgan Stanley maintains an “Overweight” rating with a $1,750 price target. The Street-high target sits at $3,250.
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