TLDR
- Sandisk shares climbed 7.6% to $417.10 Thursday, adding to a 63% gain in the first nine trading days of 2026
- The stock has rocketed over 1,000% since its February 2025 spinoff from Western Digital
- Analysts raised price targets with Bernstein hitting $580 and Benchmark at $450, both trailing current prices
- Flash memory shortage and rising NAND prices fuel the rally as manufacturers avoid adding production capacity
- Short interest reached 6.4% as some investors bet against the rapid climb
Sandisk shares pushed higher Thursday, gaining 7.6% to close at $417.10. The flash memory maker continues a hot start to 2026 that has left Wall Street scrambling.
The stock has climbed 63% through just nine trading sessions this year. It stands as one of the S&P 500’s top performers so far.
Thursday’s move followed strong earnings from Taiwan Semiconductor Manufacturing. The chipmaker also raised its 2026 capital spending forecast beyond analyst expectations. Investors see this as a positive signal for AI-related companies.
Sandisk has emerged as a key beneficiary of the AI boom. Demand for flash memory and solid state drives has exploded. The stock has gained more than 1,000% since splitting from Western Digital last February.
Analysts Race to Update Forecasts
Wall Street firms are struggling to keep pace with the rally. Barclays lifted its price target to $385 from $220 Thursday while keeping an Equal Weight rating. The firm’s target sat at just $39 until November.
Bernstein made a bigger move, raising its target from $300 to $580. That implies about 50% upside from Wednesday’s closing price. The firm cited an “unprecedented” NAND shortage and climbing prices.
Benchmark increased its target to $450 from $260 with a Buy rating. The firm expects Sandisk to achieve record profit margins through 2026.
Despite the upgrades, analyst targets lag the stock price. The average target among firms tracked by FactSet is $340.50, roughly $77 below Thursday’s close.
About 67% of analysts rate the stock a Buy or equivalent. The rest recommend holding. No analysts rate it a sell.
Memory Shortage Drives Price Action
The rally stems from tight supply in the flash memory market. NAND prices have surged as demand outstrips available production.
Manufacturers are taking a conservative stance on adding capacity. Previous cycles saw rapid expansion that led to oversupply and falling prices. This time companies are holding back.
Barclays analyst Tom O’Malley warned the trade could reverse if suppliers announce new capacity plans. He suggested the stock might stall around $400. That price point is now in the past.
Short interest has climbed to 6.4% of shares. Some investors are betting the rapid gains won’t last.
Benchmark sees growth potential in enterprise SSDs and AI-enabled PCs. Rising chip prices should boost margins as 2026 progresses, the firm said. Sandisk shares have jumped 946% since Benchmark started coverage in late May 2025.
Recent Developments
Mizuho projects NAND prices could rise another 70-100% after first quarter 2026 increases. BofA Securities previously raised its target to $390, pointing to AI chip announcements at CES.
The company added Alexander Bradley to its board in December 2025. Bradley is CFO of First Solar.
RBC Capital initiated coverage with an In-Line Sector rating. The firm highlighted strong 2025 performance driven by improved NAND fundamentals. Sandisk rose more than sixfold through 2025 after its February debut.
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