SanDisk (SNDK) surged 13% and hit a new 52‑week high on Tuesday, May 5, extending a strong rally fueled by tight memory chip supply, rising demand from AI workloads, and growing confidence in the semiconductor company’s long‑term revenue outlook. New geopolitical developments and fresh analyst optimism are adding even more fuel to SNDK stock.
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Trade STX with leverageBulls argue the memory cycle still has room to run, with AI servers, mobile devices, and enterprise storage keeping demand elevated. If pricing remains firm, SanDisk could continue expanding revenue and profits, which can help push the stock even higher.
Global Chip Coalition Lifts SanDisk and Other Memory Stocks
The U.S. government has ramped up efforts to address the global memory chip shortage, which has intensified as AI adoption accelerates. According to Nikkei Asia, the U.S. is working with allies across Asia, Europe, and the Middle East through the Pax Silica initiative, a supply chain coalition to secure semiconductor and critical mineral production while reducing reliance on China.
Fourteen countries, including India, Japan, South Korea, Singapore, and the Philippines, have already joined. The initiative aims to stabilize memory chip supply at a time when shortages are affecting companies from AI chipmakers to Apple (AAPL).
Apart from SanDisk, the report lifted stocks including Micron (MU), Western Digital (WDC), and Seagate (STX).
Susquehanna Analyst Doubles Target on Improved Visibility
SanDisk’s latest earnings report on April 30 added another catalyst to the rally. Following the release, Susquehanna analyst Mehdi Hosseini doubled his price target on SNDK stock to $2,000 from $1,000, implying more than 40% upside. He also maintained a Buy rating.
Hosseini raised estimates “across the board,” pointing to improved revenue visibility. He noted that one‑third of Fiscal 2027 revenue is already contracted, with similar trends expected into 2028.
He also highlighted SanDisk’s plan to return capital to shareholders. By committing 50% of free cash flow to buybacks over the next two years, SanDisk could generate roughly 10% earnings accretion, he said.
Is SNDK a Good Stock to Buy Now?
Turning to Wall Street, SanDisk stock has a Strong Buy consensus rating based on 13 Buys and three Holds. The average SNDK stock price target of $1,383.75 indicates about 1% downside risk.
