Sandisk (SNDK) Stock: Price Targets Raised as Flash Memory Shortage Continues

TLDR

• Sandisk stock jumped 7.6% Thursday to $417.10, extending its 63% gain through the first nine trading days of 2026
• The stock has surged over 1,000% since spinning off from Western Digital in February 2025
• Bernstein raised its price target to $580, while Benchmark lifted its target to $450, though both trail the current share price
• Flash memory shortage and soaring NAND prices are driving the rally, with analysts crediting manufacturers’ restraint on adding new production capacity
• Short interest has climbed to 6.4% of shares as some investors grow nervous about the rapid price increase

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Sandisk shares powered higher Thursday, climbing 7.6% to $417.10 as the flash memory maker extended a blistering rally that has left Wall Street analysts scrambling to catch up.

Sandisk Corporation, SNDK

The stock has now jumped 63% through just nine trading days of 2026. It ranks among the top performers in the S&P 500 this year.

The latest surge came after Taiwan Semiconductor Manufacturing reported better-than-expected earnings and projected higher capital spending for 2026. Investors interpreted the chipmaker’s guidance as a positive sign for AI-related stocks. Sandisk has become a favorite play in the AI boom thanks to surging demand for flash memory products.

The company has now gained more than 1,000% since separating from Western Digital last February. Rising AI investments have driven demand for solid state drives and flash memory, pushing prices sharply higher.

Analysts are racing to update their forecasts. Barclays raised its price target to $385 from $220 Thursday while maintaining an Equal Weight rating. Bernstein went further, boosting its target from $300 to $580, implying roughly 50% upside from Wednesday’s close.

Benchmark lifted its target to $450 from $260, keeping a Buy rating. The firm noted that Sandisk could expand margins to record levels through 2026.

Wall Street Struggles to Keep Pace

Despite the bullish calls, the stock is moving faster than analysts anticipated. The average price target among firms tracked by FactSet sits at just $340.50, about $77 below Thursday’s price.

Two-thirds of analysts rate Sandisk the equivalent of a Buy. The rest recommend holding. None rate it a sell.

The speed of the advance has made some investors nervous. Short interest has risen in recent weeks to 6.4% of shares outstanding. That suggests a growing number of traders are betting on a pullback.

Barclays analyst Tom O’Malley warned the memory trade could fall apart if manufacturers start adding production capacity. So far, suppliers have held back on building new facilities. That restraint has kept prices elevated.

Memory Shortage Fuels Price Gains

The rally reflects what Bernstein described as an “unprecedented” shortage of NAND flash memory. Prices have climbed as demand outpaces supply.

Manufacturers learned from previous cycles when rapid capacity additions led to oversupply and falling prices. This time they’re taking a more conservative approach.

Benchmark sees growth opportunities in enterprise SSDs and AI-enabled PCs. The firm expects higher chip prices to boost profit margins as 2026 progresses into 2027.

Sandisk shares have climbed 946% since Benchmark initiated coverage in late May 2025. The stock rose more than sixfold through the end of 2025 after its February debut.

O’Malley suggested the stock might stall around $400 per share. That level is already behind Sandisk as Thursday’s trading pushed it past $417.

BofA Securities previously raised its price target to $390 from $300, citing new AI chip announcements at the Consumer Electronics Show. Mizuho projected NAND prices could rise another 70-100% following increases in the first quarter of 2026.

The company added Alexander Bradley to its board in December 2025. Bradley serves as CFO of First Solar and brings experience in treasury and project finance.

RBC Capital initiated coverage with an In-Line Sector rating, noting the stock’s strong 2025 performance stemmed from improved NAND fundamentals.

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