On Tuesday, Citi Research analyst Asiya Merchant predicted a jaw-dropping 52% surge for Sandisk, raising the price target from $1,300 to $2,025 while keeping a Buy rating. Merchant explained that factories cannot make chips fast enough for all the buyers, writing, “We remain constructive on a highly favorable [supply-demand] environment with clear indications of persistence with customer demand conversations through [2030].”
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Competitor Earnings Validate Sandisk’s Hardware Strength
A blowout financial performance from a major global competitor recently confirmed that memory chips are in short supply. The Japanese chipmaker Kioxia Holdings (JP:285A) posted an outstanding 85% revenue increase compared to the previous quarter, completely beating Wall Street expectations.
To reward its own investors during this profitable cycle, Sandisk itself recently launched a massive $6 billion share buyback program to repurchase roughly 3% of its entire outstanding stock using its growing cash reserves.
Hardware Rotation Triggers Brief Market Dip
Despite the overwhelming institutional optimism, the broader semiconductor sector faced brief selling pressure as trading opened. Sandisk shares dropped 3.4% in early trading to reach $1,288.20 as fund managers rotated money out of tech hardware.
Other major storage corporations suffered similar minor pullbacks, with Micron Technology sliding 2.5%, while Seagate Technology and Western Digital (WDC) declined by more than 3%. However, most Wall Street professionals remain incredibly confident in the long-term trend, with 20 out of 26 tracked analysts labeling Sandisk as a clear buy.
Is SanDisk Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for SanDisk is Strong Buy, based on 13 Buy and three Hold ratings over the past three months. With that comes an average 12-month SNDK stock price target of $1,516.88, representing a potential 13.8% downside for the shares.
