TLDR
- Morgan Stanley analyst Joseph Moore increased SanDisk price target from $273 to $483, a 75% jump
- SNDK shares rose over 3% in pre-market trading ahead of January 29 earnings report
- Two cloud providers have secured nearly 10% of 2025 global NAND supply, creating market tightness
- Moore raised March quarter revenue forecast to $2.94 billion with non-GAAP EPS of $5.71
- Stock has surged 1,255% over the past year as NAND chip prices climbed on AI demand
SanDisk stock gained over 3% in Tuesday’s pre-market session following a major price target revision from Morgan Stanley. Five-star analyst Joseph Moore increased his target from $273 to $483 while keeping his Buy rating intact.
The timing aligns with SanDisk’s upcoming Q2 FY26 earnings release on January 29. Analysts project earnings per share of $3.58, up from $1.23 in the year-ago period.
Moore’s bullish stance centers on tight supply conditions in the NAND flash memory market. Enterprise solid-state drive demand has accelerated rapidly. Two major cloud customers have already committed to nearly 10% of worldwide NAND supply for 2025.
This concentrated buying has squeezed availability across all market segments. Consumer products are seeing the effects too. Tighter supply is pushing NAND prices higher industry-wide.
Cloud Demand Reshapes Market Dynamics
SanDisk produces NAND flash memory chips that power storage devices from SSDs to USB drives. The company stands among the leading NAND manufacturers globally.
Moore emphasized that enterprise solid-state drives represent the primary force behind current NAND market strength. Heavy enterprise purchasing has reduced available supply for consumer applications. This dynamic is supporting elevated pricing across the NAND sector.
The analyst noted his updated estimates still align with management’s December quarter guidance. He suggested this conservative positioning could create room for positive surprises when results are announced.
Financial Forecasts Jump on Pricing Strength
Moore substantially revised his March quarter projections upward. His new revenue estimate reaches $2.94 billion with non-GAAP earnings per share of $5.71.
The changes reflect more optimistic NAND pricing assumptions. Moore now anticipates NAND average selling prices will increase 20% quarter-over-quarter. His previous forecast called for just a 10% gain.
He also adjusted his bit shipment outlook. The new projection shows a 6% sequential decline compared to his earlier estimate of an 8% drop.
Wall Street Consensus Lags Stock Performance
Wall Street rates SanDisk a Moderate Buy based on 11 Buy ratings and four Hold ratings assigned in the past three months. The consensus price target sits at $384.20, suggesting 18% downside from current levels.
That average target hasn’t kept pace with the stock’s explosive rally. SanDisk shares have climbed 1,255% over the last 12 months. Most gains materialized since early September.
The company earned a spot in the S&P 500 last November. It finished as the index’s top performer for the year.
Enterprise solid-state drives consume more NAND chips than other storage products. These devices have absorbed substantial supply as companies build out AI data center infrastructure. Moore’s $483 target, while 75% above his previous call, still trades below the stock’s current price near $473.
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