Citigroup highlighted SanDisk as a prime beneficiary of the insatiable global demand for artificial intelligence memory and storage infrastructure.
- Citigroup hiked its 12-month price target on SNDK stock to $2,500 from $2,025 per share.
- “SNDK should continue to be a beneficiary of this structurally favorable environment,” Citi said.
- 18 out of 22 analysts rate the stock ‘Buy,’ three say ‘Hold’ and one ‘Sell,’ as per Koyfin.
SanDisk (SNDK) stock soared 21.5% on Thursday, its best performance since January this year, following Micron’s strong quarterly earnings and after Citigroup hiked its price target on the stock.
“Micron … reported better-than-expected F3Q26 results … on tight NAND industry conditions+mix,” Citi analyst Asiya Merchant said Thursday in a note to clients, accessed by CNBC. “SNDK should continue to be a beneficiary of this structurally favorable environment… serving as a competitive moat, and with increasing mix to data center further benefiting its margins through the longer-term.”
Citi has a buy recommendation on Sandisk, and hiked its 12-month price target on the stock to $2,500 from $2,025, implying a 23.5% upside from its previous target price and 7% higher from Thursday’s closing price.
Micron’s Strong Q3
Micron’s stock ended Thursday 16% higher, and the Roundhill Memory ETF (DRAM) was up 10%.
Micron said revenue increased 346% to $41.46 billion last quarter, handily beating analysts’ expectations of $35.3 billion. Earnings came in at $25.11 per share, beating expectations of $20.28 per share.
The memory chipmaker’s gross margin surged to 84.9% in the third quarter from 39% a year earlier, placing it among the highest-margin companies in the technology sector. The company’s revenue and profit outlook for the current quarter, which ends in August, also blew past expectations.
SanDisk Q3 Earnings Recap and Q4 Outlook
SanDisk reported revenue of $5.95 billion, up 251% from the previous year, and far ahead of the $4.73 billion expected by analysts polled by Fiscal.ai.
Earnings for the quarter ending March came in at $23.41 per share, far ahead of $14.66 expected.
Analysts expect revenue to come in at $8.28 billion for the quarter ending June 2026 with earnings of $33.72 per share, according to estimates by Fiscal.ai.
SNDK Stock: Retail View
Retail sentiment on Stocktwits was ‘bullish’ with ‘extremely high’ message volumes.
“$SNDK is pricing a near-perfect NAND cycle: strong AI demand, high prices, and peak margins,” a user wrote.
“But NAND is still cyclical. If supply normalizes or pricing softens, earnings reset could be sharp. Momentum can last, but cycle-top valuation risk is real.”
SNDK Stock has soared 884% year-to-date.
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