Analysts Raise SanDisk Targets as Shares Plunge

SanDisk shares fell 12.6% to $1,673.97 on Monday and slipped a further 2.4% in late trading, even as several analysts raised price targets to as high as $3,100, citing strong NAND demand, AI data-center growth and multiyear supply contracts.

The stock has been volatile in July. It lost about 29% in the first four trading sessions of the month, then recovered roughly 18% over the next three days before selling off again. Even after the latest decline, SanDisk shares are more than 600% higher for 2026.

The weakness extended across the sector. The Philadelphia Semiconductor Index fell 4.8% on Monday, and other chip stocks including Marvell and Intel declined. Memory shares in Seoul retreated after SK Hynix recorded its biggest one-day drop in nearly two decades, falling more than 15% there and about 9.3% on U.S. listings.

Renewed fighting near the Strait of Hormuz pushed oil prices higher, adding to concern about inflation and contributing to risk-off trading that affected richly valued technology and semiconductor names.

Several analysts increased their valuations after the sell-off. Evercore ISI analyst Amit Daryanani raised his target to $3,100 from $1,400 and kept an Outperform rating, arguing investors may be underestimating the durability of SanDisk’s earnings, free cash flow and pricing power. Citigroup maintained a $2,500 target, citing continued demand from AI data centers. Bernstein’s Mark Newman raised his target to $3,000 from $1,700, pointing to SanDisk’s new multiyear supply contracts with financial guarantees that give the company greater visibility on future sales and cash flow. Goldman Sachs’ James Schneider lifted his target to $2,200 from $1,200, retained a Buy rating and projected a very strong fiscal fourth quarter, forecasting 2026 adjusted earnings roughly 30% above the Street consensus.

Analysts cite supply and demand dynamics as the basis for their revisions. Building additional NAND manufacturing capacity requires years of investment and planning, while hyperscalers’ construction of AI data centers is increasing demand for enterprise solid-state drives. Several firms expect a NAND supply-demand imbalance to persist through 2027, supporting pricing and margins for established suppliers.

Investors will receive new company data in August. SanDisk is scheduled to report fiscal fourth-quarter and full-year 2026 results on August 5 and will host an investor day on August 13, when management is expected to provide more detail on long-term contracts, capacity plans and the company’s earnings outlook.