TLDR
- SanDisk stock surged 35% over five days, adding another 5%+ in premarket trading Monday
- The rally was sparked by the August 13 Investor Day, where SanDisk projected mid-to-high-teens annual revenue growth through fiscal 2030
- JPMorgan resumed coverage with an Overweight rating and a $2,250 price target
- Commerce Secretary Howard Lutnick urged Apple not to buy memory chips from China, lifting U.S. memory stocks broadly
- A hedge fund held SNDK as its largest position at 28.52% of its $20.2 billion portfolio, up 118.87% from the prior quarter
SanDisk stock rose more than 5% in premarket trading Monday, hitting around $1,709, extending a five-day run that has seen the stock gain 35%. Despite the surge, it remains more than 25% below its record closing high of $2,335 set on June 25.
The rally started with SanDisk’s “In Focus” Investor Day on August 13. Management laid out a long-term financial model projecting mid-to-high-teens annual revenue growth, non-GAAP gross margins of around 80%, and adjusted free cash flow margins of roughly 50% for fiscal years 2028 through 2030.
Those targets beat what Wall Street had been expecting.
CEO David Goeckeler said the results were “the direct result of disciplined execution against the strategy we outlined 18 months ago.” CFO Luis Visoso said the company is “optimizing for growth, sustainability and returns.”
SanDisk also committed to returning 100% of excess cash to shareholders once the business is fully funded.
Analyst Reactions
JPMorgan resumed coverage of SanDisk on August 14 with an Overweight rating and a $2,250 price target. Analyst Harlan Sur called the company “uniquely positioned” to capture demand for NAND flash memory driven by “rapid growth in AI inference.”
Cantor Fitzgerald’s CJ Muse publicly defended a $2,900 price target on CNBC. Goldman Sachs and Mizuho each reaffirmed their Buy ratings.
Wedbush analyst Matt Bryson reiterated an Outperform rating with a $2,000 target, though he said he “retains some skepticism” around several points from the Investor Day. He noted that “memory will again prove to be cyclical,” but added that Wedbush’s estimates likely understate SanDisk’s 2028 earnings power.
The average analyst price target sits at $2,210, implying around 35% upside from Friday’s close. About 81% of analysts covering the stock rate it a Buy, the highest ratio since SanDisk was spun off from Western Digital last year.
Sector Tailwinds
SanDisk was not alone in Monday’s premarket move. Western Digital, Seagate, Micron, SK Hynix, and Silicon Motion all rose, reflecting broader optimism around NAND supply constraints and enterprise SSD demand from AI data centers.
Commerce Secretary Howard Lutnick added another layer of support. He urged Apple not to buy memory chips from China, saying the message had been delivered “plainly,” according to The Wall Street Journal. That news lifted U.S. memory names broadly.
A Q2 13F filing also showed that the Situational Awareness hedge fund held SanDisk as its largest position, at 28.52% of its $20.2 billion portfolio. That stake grew 118.87% from the prior quarter.
SanDisk’s 52-week low stands at $43.20. Its 52-week high of $2,354.39 was set in June.
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