SanDisk Stock Surges 2,800% on AI Memory Demand

Shares of SanDisk Corporation increased 2,800% over the past year, driven by a surge in demand for memory processors used in artificial intelligence data centers. This demand created a NAND memory shortage that pushed the company's Q4 fiscal 2026 gross margin to nearly 85% and non-GAAP earnings to $39.25 per share. The stock currently trades at 5–6x forward earnings, with growth attributed to underlying earnings rather than P/E expansion.

Financial analysis indicates significant value in the company's signed NBM contracts, which represent approximately $90 billion in revenue potential at floor pricing with gross margins of roughly 80%. This contracted revenue accounts for about 50% of SanDisk's $180 billion market capitalization. Despite these gains, the stock recently experienced a 35% pullback as the market priced in peak-cycle mean reversion and risks related to customer concentration and execution.

Industry outlooks remain divided. While 13 of 16 analysts rate the stock as a buy, price targets range from $1,300 to $3,000. Micron Technology and SK Hynix predict tight supply conditions will persist beyond 2027 and through 2030, respectively, supported by massive AI capital expenditures from firms like Alphabet Inc. Conversely, analysts at Morningstar warn that memory remains a commodity-oriented product and that supply will eventually catch up to demand.