SanDisk (SNDK) stock jumped sharply after the company delivered a standout Q2 earnings report and guidance, blowing past Wall Street estimates on both profit and revenue. Having said that, the stock’s solid rally raises the risk of near-term volatility as some investors lock in profits. For long-term investors who believe AI-driven storage demand is still in the early innings, any pullbacks could present attractive entry points. Overall, SNDK remains compelling for patient investors—but chasing the stock immediately after a big spike may require caution.
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SNDK stock jumped 17.17% in pre-market trading on Friday. Year-to-date, the shares are up more than 125%.
AI Boom Powers SanDisk Profit and Revenue Surge
SanDisk’s fiscal second-quarter profit jumped 672% year-over-year to $803 million, or $5.15 per share. Meanwhile, revenue climbed 61% to $3.03 billion, beating analysts’ $2.69 billion estimate.
The company’s data-center revenue jumped 76% from a year earlier, as artificial intelligence continued to drive a sharp increase in demand.
What Lies Ahead for SanDisk?
Looking ahead, the company said it expects revenue of $4.4 billion to $4.8 billion for the next quarter, far above Wall Street’s $2.9 billion estimate. Even the midpoint of the range implies nearly 60% upside versus expectations. SanDisk also guided for adjusted EPS of $12 to $14, compared with analysts’ forecasts of just $5.11—a gap of more than 150%.
SanDisk’s outlook underscores just how quickly AI-driven demand is accelerating, suggesting that earnings momentum is still building rather than peaking. Despite the strong quarter, management said the company was unable to fully meet surging demand and expects this supply-demand imbalance to persist into 2026. That level of visibility supports continued revenue growth and sustained pricing power.
At the same time, SanDisk’s sharp improvement in profitability signals that operating leverage is kicking in as volumes rise.
What Is the Price Target for SanDisk?
Wall Street analysts currently rate SanDisk stock a Moderate Buy, with 10 Buy ratings and four Holds issued over the past three months. After the recent rally, the shares are now trading above SanDisk’s average price target of $395.93, implying a downside of 26.6% from current levels.
That said, these ratings and targets are likely to change as analysts update their forecasts following the latest earnings report.
