Key Takeaways
- Shares of SanDisk (SNDK) advanced 5.2% Thursday, closing at $821.68
- Bernstein’s Mark Newman elevated his price target to a Wall Street-leading $1,250 from $1,000
- The analyst presented an optimistic scenario valuing shares at $3,000 under favorable conditions
- Cantor Fitzgerald also increased its target to $1,000 from $800 with an Overweight stance
- Over the trailing 12 months, SNDK has rocketed 2,567%, dwarfing the S&P 500’s 29% advance
Shares of SanDisk rallied 5.2% during Thursday’s session, reaching $821.68 as the memory chipmaker extended its extraordinary run. The upward momentum followed Bernstein analyst Mark Newman’s decision to lift his price target to $1,250 — establishing the highest forecast on Wall Street — from his previous $1,000 objective.
The new target suggests approximately 60% appreciation potential from Wednesday’s settlement price of $780.90. Newman maintains an Outperform rating on the shares.
Newman’s bullish stance centers on memory chip demand dynamics. The analyst believes the market is failing to properly appreciate SanDisk’s earnings capacity and the longevity of the current industry expansion.
“We think the market is significantly undervaluing earnings power and sustainability of this cycle,” Newman stated in his research note.
Beyond the base case, Newman presented an ambitious “blue-sky” projection placing shares at $3,000. This calculation applies elevated valuation metrics to aggressive bull-case profit forecasts.
Bernstein currently projects SanDisk will produce $144 in earnings per share for FY27 under its baseline scenario, with the optimistic case reaching $224.
Multiple Firms Raise Expectations
Cantor Fitzgerald’s C.J. Muse simultaneously increased his price objective Thursday, advancing it to $1,000 from $800 while reaffirming his Overweight recommendation.
Muse highlighted persistent strong demand and anticipates supply constraints continuing well into 2028. “Demand remains robust, and we see the supply/demand imbalance extending into likely mid-CY28 earliest,” the analyst noted.
NAND flash pricing serves as a critical catalyst behind both upgrades. Pricing has accelerated beyond analyst expectations, prompting reassessments of the cycle’s duration and strength.
UBS previously documented that DDR memory pricing surged an average of 95% quarter-over-quarter in Q1, while NAND flash experienced an 80% increase.
Dismissing TurboQuant Concerns
Memory sector stocks experienced selling pressure last month following Alphabet‘s unveiling of its TurboQuant compression technology. Google’s research team claimed the innovation reduced key value memory requirements in artificial intelligence models by a minimum of six-fold, sparking investor anxiety.
Newman dismissed these concerns as excessive, invoking Jevons paradox — the economic principle suggesting that efficiency improvements in resource usage typically drive increased total consumption rather than decreased demand.
SanDisk shares have skyrocketed 2,567% over the past year. By comparison, Micron Technology (MU) has gained 473% during the identical timeframe. The broader S&P 500 index has advanced 29%.
Consensus among Wall Street analysts positions SNDK as a Moderate Buy, with 11 Buy recommendations and 3 Hold ratings issued during the past three months. The consensus price target of $771.54 trades marginally below current market levels.
Market participants will closely monitor SanDisk’s fiscal Q3 2026 results scheduled for April 30, which should provide crucial insights into pricing trajectories and demand strength.
