SanDisk’s stock (NASDAQ:SNDK) is trading 1.9% higher this morning, following a significant price target increase from Mizuho. The firm’s bullish outlook on select semiconductor stocks, particularly those poised to benefit from artificial intelligence (AI) growth, contrasts with the current market pullback.
Mizuho’s revised price target, jumping from $250 to $410 with an maintained Outperform rating, signals confidence in the company’s long-term prospects. This adjustment stems from Mizuho’s 2026 outlook, which anticipates continued, albeit more modest than in 2025, upside in the semiconductor sector due to attractive valuations. The firm identifies AI accelerators, wafer fabrication equipment, optical components, and memory as leading sectors for 2026.
Mizuho’s broader semiconductor analysis highlights a selective approach, expressing caution towards sectors like electric vehicles, autos, analog components, computers, and handsets.
Instead, the firm’s top picks for 2026 are Nvidia (NASDAQ:NVDA), Lumentum (NASDAQ:LITE), and Broadcom (NASDAQ:AVGO), reflecting a focus on companies heavily involved in AI infrastructure and related technologies.
In line with this view, Mizuho also raised its price target for Micron to $390 from $290, reiterating its Outperform rating.
A History of Upward Revisions
This positive assessment of SanDisk is not an isolated event. Throughout 2025, several firms adjusted their price targets upwards, reflecting evolving market conditions and SanDisk’s performance. In November 2025, Mizuho raised its price target to $250 from $215, emphasizing accelerating AI server demand driving pricing. SanDisk’s third-quarter revenue of $2.31 billion, exceeding consensus estimates of $2.15 billion, and guidance for a 13% quarter-over-quarter revenue increase in the fourth quarter to $2.6 billion, with gross margins projected to rise to 42%, supported this bullish sentiment.
Prior to that, in September 2025, Mizuho had already increased its price target to $112 from $57, citing improvements in the NAND and enterprise SSD market. The firm anticipated tailwinds in the second half of 2025, as SanDisk raised prices around September 4, leading to adjusted fiscal 2026 estimates of $8.86 billion in revenue and $5.78 EPS, slightly above consensus expectations.
Price Target Changes Reflect Bullishness
Mizuho’s concurrent actions on related stocks further illuminate its sector outlook. The firm raised its price target for Broadcom to $480 from $450, citing Broadcom’s increased fiscal 2026 AI revenue outlook and seeing continued upside potential through fiscal years 2026, 2027, and 2028 driven by the company’s AI portfolio and ScaleOut/Up opportunity.
Similarly, Mizuho raised its price target for Lumentum to $325 from $290, citing potential benefits from Google’s expanding TPU deployments, with Google planning to offer TPU capacity to Meta in 2026, potentially reaching billions of dollars in spending on installing TPUs in Meta data centers by 2027.
Analyst Summary: Bull and Bear Cases
Bull Case:
- Mizuho raised its price target to $410 from $250, signaling strong long-term confidence.
- The company is well-positioned to capitalize on the growing demand for memory in AI-driven markets.
- SanDisk reported strong Q3 revenue that beat consensus estimates and provided bullish Q4 guidance.
- Multiple firms, including Morgan Stanley and Citigroup, share the positive outlook with upward price target revisions.
Bear Case:
- The stock experienced a significant single-day drop of over 5%, indicating short-term volatility and profit-taking.
- Broader semiconductor market caution exists, particularly in sectors like EVs, autos, and handsets.
- The company’s performance is subject to the historically cyclical and dynamic nature of the NAND market.
- Past analyst revisions have included downgrades, such as Mizuho’s price target cut in April 2025, reflecting market softness.
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