Artificial intelligence (AI) is creating an unprecedented demand for faster and more efficient memory, and SanDisk Corporation (SNDK) has just taken a major step toward addressing that challenge. In partnership with SK hynix (SKHY), the company unveiled the industry’s first High Bandwidth Flash (HBF) standard, a next-generation memory technology. It is designed to bridge the performance gap between high-bandwidth memory (HBM) and traditional solid-state drives (SSDs), offering bandwidth ranging from 0.4 TB/s to 3.0 TB/s and capacities of up to 512 GB.
The standard adopts the industry-standard UCIe interface, enabling compatibility with GPUs and CPUs, and includes specifications for packaging, reliability, and software I/O. The companies plan to accelerate HBF adoption through its consortium with Alphabet (GOOG) (GOOGL), and Tenstorrent.
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By combining HBM-like data transfer speeds with the scalability and NAND flash, HBF could reshape AI inference infrastructure while opening a significant new growth opportunity for SanDisk. So, can this breakthrough strengthen SanDisk’s competitive position and become a meaningful long-term catalyst for SNDK stock?
About SanDisk Stock
SanDisk Corporation is a leading data storage and flash memory company headquartered in Milpitas, California. The company designs, develops, and manufactures a broad portfolio of NAND flash storage products, including SSDs, memory cards, USB flash drives, and embedded storage solutions. The company’s market cap has expanded dramatically, with its current standing at $200 billion.
SNDK has been one of the market’s standout AI infrastructure winners, with the stock soaring 2,776.85% over the past 52 weeks and climbing 410.22% year-to-date (YTD), fueled by surging demand for NAND flash memory and AI storage solutions.
Despite a sharp correction by over 40% from its June highs, investor sentiment has improved in recent days. Over the past five trading sessions, the stock has been down 5.38%, although it did experience a 6% gain on Aug. 3 followed by another 10.84% surge on Aug. 4.
The rally has been driven by renewed optimism surrounding AI memory demand, encouraging industry developments such as the launch of the first HBF standard with SK hynix, and growing anticipation ahead of the company’s upcoming quarterly earnings report.
www.barchart.com The stock is currently trading at a premium compared to the sector median, at 15.01 times sales (TTM).
Robust Q3 Financial Performance
SanDisk reported an exceptionally strong fiscal third-quarter 2026 on Apr. 30, as accelerating AI-driven demand for NAND storage and higher pricing fueled profitability. Revenue climbed to $5.95 billion, representing a 97% sequential increase and a 251% year-over-year (YOY) increase, comfortably exceeding expectations.
Growth was driven by a richer mix of high-value customers and a sharp expansion in data center sales, which surged 233% sequentially and 645% YOY, while Edge revenue rose 118% sequentially and 295% YOY. Consumer revenue declined 10% sequentially but remained 44% higher than a year earlier.
Profitability improved dramatically alongside revenue. Its non-GAAP gross margin rose to 78.4% from 22.7% in the prior-year quarter. Also, non-GAAP operating income climbed to $4.2 billion from $2 million in the prior-year quarter.
Non-GAAP net income increased to $3.7 billion from $967 million in the prior quarter, while non-GAAP EPS surged to $23.41, up from $6.20 sequentially and reversing a loss of $0.30 per share in the year-ago period, while exceeding the consensus estimate.
Furthermore, management issued a robust outlook for fiscal fourth-quarter 2026, projecting revenue of $7.75 billion to $8.25 billion, non-GAAP gross margin of 79% to 81%, non-GAAP operating expenses of $480 million to $500 million, and non-GAAP EPS of $30 to $33. The company expects continued strength in AI-driven storage demand, favorable NAND pricing, and increasing adoption of its New Business Model (NBM) agreements to sustain revenue growth, margin expansion, and earnings momentum.
Analysts remain optimistic, forecasting EPS of $40.68 for the current quarter, a substantial 4,420% YOY jump, followed by a further 167.89% rise to $185.89 in 2027.
What Do Analysts Expect for SanDisk Stock?
Last month, Susquehanna maintained a “Positive” rating on SanDisk while lowering its price target from $3,250 to $3,050. The firm said the reduction was driven by revisions to its financial model after correcting previously inaccurate revenue and earnings estimates, rather than any deterioration in SanDisk’s fundamentals. Susquehanna remains bullish on the company’s long-term outlook, citing AI-driven NAND demand and upcoming catalysts, including the fiscal fourth-quarter earnings report.
Also, BofA Securities maintained a “Buy” rating on SanDisk and raised its price target from $2,100 to $2,500, reflecting confidence that the favorable supply-demand imbalance in the NAND memory market will persist longer than previously expected, supported by robust AI-driven demand and disciplined industry capacity additions.
Overall, SNDK has a consensus “Strong Buy” rating. Of the 22 analysts covering the stock, 18 advise a “Strong Buy,” one suggests a “Moderate Buy,” and the remaining three analysts are on the sidelines, giving it a “Hold” rating.
SNDK’s average analyst price target of $2,342.65 indicates an upside of 87.4%, while the Street-high target price of $3,169 suggests that the stock could rally as much as 153.5%.
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www.barchart.com On the date of publication, Subhasree Kar did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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