TLDR
- SanDisk (SNDK) stock declined 2.5% Monday with an extra 1% drop after hours on Samsung memory chip news
- Fiscal Q2 2026 earnings showed $3.025 billion revenue, up 61% year-over-year, topping estimates by $340 million
- Goldman Sachs analyst boosted price target to $700 and increased EPS forecast 200% to $32
- Shares have climbed 1,500% over the past year including a 145% January rally
- Wall Street shows 11 Buy ratings with average price target of $637.33 suggesting 9% upside
SanDisk (SNDK) stock lost 2.5% Monday as investors digested news from the memory chip sector. After-hours trading saw an additional 1% decline.
Samsung’s plans to start HBM4 memory chip mass production later this month triggered the selloff. The development raised questions about supply growth in the memory market.
The retreat comes after an extraordinary run. SNDK shares have soared 1,500% over the past twelve months.
January delivered a 145% gain alone. The current dip appears modest compared to recent gains.
Goldman Sachs analyst James Schneider maintains a bullish stance. He lifted his price target to $700, representing 20% potential upside.
“We expect the stock to move higher following a quarter and guidance that were far above the Street,” Schneider explained.
Blowout Q2 Earnings Beat Forecasts
The company’s fiscal Q2 2026 results supported the optimistic view. Revenue reached $3.025 billion, marking 61% year-over-year growth.
SanDisk beat revenue expectations by $340 million. Earnings per share of $6.20 crushed analyst estimates by $2.66.
Fiscal Q3 guidance came in between $4.4 billion and $4.8 billion. The outlook points to sustained growth in coming months.
Schneider raised his EPS target by 200% to $32. He kept his price-to-earnings multiple at 22x.
The analyst cited strong pricing trends and positive supply-demand conditions. Nvidia’s storage controller announcement should drive additional memory product demand.
“We view these results as above the most bullish investor expectations,” Schneider noted.
Memory Market Dynamics Shift
Samsung’s HBM4 timeline acceleration caught market attention. Micron (MU) shares also dropped 2.9% Monday on the news.
SanDisk doesn’t produce HBM chips. The company focuses on developing high-bandwidth flash NAND memory for AI data centers.
Investors worry that Asian manufacturers are increasing production capacity. Memory chip prices that boosted SanDisk’s profit fivefold could face downward pressure.
Schneider expects supply constraints and growing demand to lift earnings over twelve months. He keeps his Buy rating intact.
The analyst believes conditions favor continued strength. He projects Street estimates will move higher as supply remains tight and demand accelerates.
Analyst Community Stays Positive
Wall Street sentiment leans bullish on SNDK. The stock carries 11 Buy ratings against 4 Hold ratings.
The consensus twelve-month price target stands at $637.33. That implies roughly 9% upside from current trading levels.
Goldman Sachs increased its earnings forecast based on Q2 results. The analyst sees favorable market conditions persisting through 2026.
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