SanDisk Stock Hits Fresh Highs as Benchmark Raises Price Target

SanDisk stock surged 7.22% this morning, reaching $423 and marking a fresh all-time high for the memory chipmaker as analysts continue to raise price targets amid a tightening supply environment for NAND flash memory.

The rally comes on the heels of stronger-than-expected results from Taiwan Semiconductor Manufacturing Company, which has lifted sentiment across the broader semiconductor sector and reinforced optimism around chip demand driven by artificial intelligence infrastructure.

Benchmark lifted its price target on SanDisk to $450 from $260 while maintaining a Buy rating on the shares. The firm acknowledged the stock's extraordinary 946% gain since initiating coverage in late May of last year, yet emphasized that the investment thesis remains compelling. The analyst pointed to a fundamental shift in industry behavior, noting that NAND manufacturers are exercising unusual restraint in capacity expansion compared to previous upcycles. This disciplined approach is expected to drive significant margin improvements to record levels as 2026 progresses into 2027, supported by rising chip prices that reflect persistent supply constraints.

Industry dynamics have shifted dramatically in recent months. Reports indicate that SanDisk is set to double pricing for its enterprise-grade 3D NAND used in solid-state drives during the first quarter of 2026, a reflection of both immediate supply shortages and anticipated long-term growth in AI-related storage demand. Major technology companies including Google, Meta, Nvidia, and OpenAI are investing heavily in AI infrastructure, consuming high-bandwidth memory and SSDs at unprecedented rates. This surge has created a supply squeeze that manufacturers appear unwilling to alleviate through aggressive capacity additions, a departure from historical patterns that typically led to boom-bust cycles.

The bullish sentiment extends beyond Benchmark. Bernstein has set a Street-high price target of $580, citing tight NAND supply and sharp price increases as SanDisk benefits from AI-driven data growth. Bank of America raised its target to $300 following management discussions indicating the NAND market will remain undersupplied through at least the end of 2026. Morgan Stanley elevated its target to $230 from $96, projecting industry-wide pricing increases of 10-15% or more in both the fourth quarter and first quarter. Jefferies significantly increased its target to $180 from $60, highlighting improved pricing outlook, hard disk drive shortages, and the rapid proliferation of multimodal large language models as key tailwinds.

Price Targets

The convergence of supply discipline and AI-driven demand has created a rare pricing environment for NAND manufacturers. Markets are pricing in expectations for sustained margin expansion and revenue growth, though the rapid appreciation in valuation has prompted some caution about potential overheating. The stock now trades well above levels seen earlier in 2025, reflecting a fundamental reassessment of SanDisk's earnings power in this new supply-demand paradigm.

Looking ahead, the trajectory for SanDisk appears increasingly tied to the pace of AI adoption and the willingness of manufacturers to maintain capacity discipline. If supply remains constrained while demand continues accelerating, the company could see multiple quarters of upward earnings revisions. However, any signs of capacity expansion or demand moderation could test current valuations. For now, markets are rewarding SanDisk's positioning in a sector experiencing structural tailwinds that show little sign of abating in the near term.