SanDisk (SNDK) Stock Drops 2.5% on Samsung HBM4 Production News

TLDR

• SanDisk (SNDK) shares fell 2.5% Monday and 1% after hours as Samsung’s HBM4 production plans sparked supply concerns
• Q2 fiscal 2026 revenue reached $3.025 billion, beating estimates by $340 million with 61% year-over-year growth
• Goldman Sachs raised price target to $700 despite pullback, citing tight supply and strong demand trends
• Stock has rallied 1,500% over twelve months with a 145% gain in January alone
• Analyst consensus shows 11 Buy ratings and average price target of $637.33

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SanDisk (SNDK) stock fell 2.5% during Monday’s regular session. Shares dropped an additional 1% in after-hours trading.

Sandisk Corporation, SNDK

The decline followed weekend reports that Samsung will begin mass production of HBM4 memory chips later this month. The news raised concerns about increasing supply in the memory chip market.

The stock’s recent performance has been nothing short of explosive. SNDK shares have gained over 1,500% in the past twelve months.

January alone delivered a 145% surge. The pullback represents a modest breather after the historic rally.

Goldman Sachs analyst James Schneider sees more room to run. He raised his price target to $700, implying 20% upside potential.

Q2 Results Crush Expectations

SanDisk’s fiscal Q2 2026 earnings justified the analyst’s confidence. Revenue climbed to $3.025 billion, up 61% from the prior year.

The company exceeded revenue estimates by $340 million. Earnings per share of $6.20 beat forecasts by $2.66.

Management issued Q3 revenue guidance between $4.4 billion and $4.8 billion. The projection indicates continued growth momentum.

Schneider increased his EPS estimate by 200% to $32 from $14.55. He maintained his 22x price-to-earnings multiple.

The analyst highlighted strong pricing power and favorable supply-demand dynamics. Nvidia’s recent storage controller announcement should further boost memory product demand.

Samsung News Creates Headwinds

Samsung’s accelerated HBM4 timeline grabbed investor attention. Micron (MU) also fell 2.9% Monday on the same news.

SanDisk doesn’t manufacture HBM chips directly. The company is developing high-bandwidth flash NAND memory for AI data centers.

The broader worry centers on Asian manufacturers ramping up production. Memory chip prices that quintupled SanDisk’s profit could face pressure as supply increases.

Schneider expects tight supply and rising demand to push earnings higher over the next year. He maintains his Buy rating.

Wall Street Remains Bullish

Analyst sentiment remains largely positive on SNDK. The stock holds 11 Buy ratings versus 4 Hold ratings.

The average twelve-month price target sits at $637.33. That suggests roughly 9% upside from current levels.

The analyst believes a combination of constrained supply and accelerating demand will drive estimates higher. He expects the positive trends to continue over the next twelve months.

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