Why 1 Analyst Is Betting DRAM Strength Can Supercharge Sandisk Stock to $3,250

The artificial intelligence (AI) boom has created plenty of market darlings, but one critical piece of the puzzle still flies under the radar. Investors obsess over graphics processors, cloud giants, and the massive energy demands of modern data centers. Yet every AI workload ultimately needs somewhere to store mountains of data, making storage infrastructure just as essential to the story.

That reality has turned NAND flash memory into a key beneficiary of the AI buildout. Owing to the rising storage requirements, companies are rolling out more models, expanding inference capabilities, and processing larger datasets. Sandisk Corporation (SNDK) sits right at the heart of the trend, which helps explain why the stock has surged more than 653.8% so far in 2026. 

The bullish narrative gained fresh momentum on Friday, May 29, when Susquehanna raised its price target on Sandisk to $3,250 from $2,000. The firm also increased its target on Micron Technology (MU), citing ongoing strength across memory and storage markets.

Analyst Mehdi Hosseini pointed to robust Dynamic Random Access Memory (DRAM) fundamentals driven by commodity pricing and the growing allocation of DRAM bits toward High Bandwidth Memory (HBM) and server applications. And, he highlighted rising NAND demand fueled by AI inference workloads, a trend that can support stronger average selling prices through the second half of 2026.

Hosseini expects enterprise Solid-State Drive (SSD) demand to pick up from the second quarter into the third quarter as cloud service providers ramp up purchases. At the same time, tight memory supply could limit system production, potentially pushing some server and storage shipments into the first half of 2027. 

Against that backdrop, Sandisk's growth story continues to attract attention.

About Sandisk Stock

Headquartered in Milpitas, California, Sandisk develops, manufactures, and supplies data storage products and solutions built on NAND flash technology. Carrying a market cap of $271.2 billion, the company's product portfolio includes SSDs, embedded storage solutions, removable memory cards, USB flash drives, wafers, and other storage related components.

The stock's performance has bordered on extraordinary. Shares soared 4,393.7% in the last 52 weeks. Investors also enjoyed a 42.48% gain during the past month alone, leaving many of the market's strongest performers trailing in its wake. Bullish sentiment led the stock to reach another milestone on Wednesday, June 3 when Sandisk climbed 6.7% intraday to establish a fresh 52 week high of $1,861. 

On the valuation front, SNDK stock is currently trading at 28.12 times forward adjusted earnings and 13.88 times sales. Both figures sit above industry averages, signaling a premium, and the market appears willing to pay every cent of it.

Sandisk Surpasses Q3 Earnings

Sandisk's Q3 FY2026 results, released on April 30, added even more fuel to the rally. Shares gained 3% on the day of the announcement, followed by an additional 8.3% advance in the next trading session.

Revenue reached $5.95 billion, representing year-over-year (YOY) growth of 251% and blowing past Wall Street's $4.55 billion estimate. Non-GAAP EPS came in at $23.41, comfortably ahead of the $14.36 analyst estimate and marking a dramatic turnaround from the modest loss recorded during the same period last year.

Non-GAAP gross profit jumped to $4.7 billion from $385 million a year earlier. Non-GAAP operating income climbed to $4.2 billion from just $2 million in the comparable quarter. Moreover, non-GAAP net income totaled $3.7 billion compared with a net loss of $43 million during the prior year period.

Sandisk finished the quarter holding $3.73 billion in cash and cash equivalents. The company carried no debt after fully repaying its term loan. Management served up an optimistic Q4 outlook. 

The company expects Q4 FY2026 revenue to come in between $7.75 billion and $8.25 billion. Meanwhile, non-GAAP EPS could land between $30 and $33.

On the other hand, analysts expect Q4 FY2026 EPS to soar 158,950% YOY to $31.81. Full year FY2026 bottom line estimates stand at $63.58, implying annual growth of 3,471.91%. Analysts then project another 182.8% jump to $179.82 in FY2027.

What Do Analysts Expect for Sandisk Stock?

Morgan Stanley has raised its SNDK price target to $1,750 from $1,100 and reaffirmed its “Overweight” rating on the stock. Analysts cited exceptionally strong memory market demand as a major factor behind the sizable increase.

Mizuho also turned bullish, lifting its target price to $1,825 from $1,625 while maintaining an “Outperform” rating. After reviewing memory market trends and the growing influence of agentic AI, the firm concluded that NAND demand remains robust, DRAM demand should stay strong through 2027, and the total addressable market for HBM continues to expand.

Wall Street's verdict remains overwhelmingly favorable as they have assigned SNDK stock an overall rating of “Strong Buy.” Among 22 analysts covering the name, 18 rate the stock a “Strong Buy,” one assigns it a “Moderate Buy,” and three suggest “Hold.” 

The stock is already trading above its average price target of $1,714.44. Meanwhile, Susquehanna’s Street-High target of $3,250 suggests a gain of 84.7% from current levels.