SanDisk Corp. (SNDK) shares have dropped sharply this month, even as Wall Street analysts grow more confident in the company’s long-term earnings power.
The stock slumped 16% to $1,915 in July through Friday, then closed Monday’s session down an additional 12.63%, extending losses further in after-hours trading.
Despite the steep decline, SNDK is still up more than 700% in 2026, a remarkable run driven by surging demand for memory storage chips tied to artificial intelligence infrastructure.
Evercore ISI analyst Amit Daryanani issued a new $3,100 price target on Sunday, up sharply from his prior target of $1,400, citing confidence in the company’s trajectory.
Daryanani said investors were “underappreciating the durability” of SanDisk’s earnings and free cash flow over the next few years as supply constraints persist.
He also pointed to SanDisk’s pricing power as a key advantage, arguing the supply and demand imbalance in memory markets is likely to last through 2027.
Daryanani went further, suggesting SNDK shares could reach $4,000, noting that new long-term supply agreements represent a “structural shift in Sandisk’s earnings visibility.”
Goldman Sachs analyst James Schneider boosted his price target to $2,200 from $1,200 while maintaining a Buy rating, with his 2026 adjusted earnings per share estimate sitting roughly 30% above Street consensus.
Schneider’s firm is anticipating a “very strong” fiscal fourth quarter 2026 earnings announcement from SanDisk, scheduled to be released in August.
Bank of America Securities analyst Wamsi Mohan raised his price target from $2,100 to $2,500, representing roughly 54.5% upside potential from recent levels, while keeping his Buy rating.
Mohan believes memory chip demand will continue to outpace supply for NAND memory chips through 2027, reinforcing his bullish stance on the company.
Bernstein analyst Mark Newman lifted his price target from $1,700 to $3,000, representing 85.5% upside potential, and said SanDisk’s new supply contracts are more favorable than older agreements that primarily benefited customers.
Citi analysts also reiterated support, maintaining their $2,500 price target alongside a 90-day upside view on SanDisk, Seagate Technology, and Western Digital.
Wedbush analyst Matthew Bryson told MarketWatch that the memory market remains “in a very good place,” with SanDisk and Micron Technology benefiting from AI-driven demand and constrained supply capacity.
Bryson noted that chipmakers cannot quickly expand production because building new fabrication facilities is a slow and capital-intensive process that takes considerable time.
The broader selloff was partly sparked by SK Hynix suffering its steepest single-day drop on the South Korean exchange in nearly 20 years, rattling the global memory sector.
Geopolitical tensions also weighed on markets, as fresh US-Iran military confrontations near the Strait of Hormuz added to investor anxiety overnight.
SanDisk reported record fiscal third quarter 2026 results and disclosed five multi-year AI-related supply agreements worth approximately $42 billion in minimum contractual revenue, backed by more than $11 billion in financial guarantees running through at least 2028.
A striking 79% of analysts covering SNDK currently rate the shares a Buy, the highest proportion since the company was spun off from Western Digital in February 2025.
Analysts continue to monitor potential supply growth from Chinese memory manufacturers as a risk factor, though most view the recent decline as sector rotation rather than any fundamental shift in SanDisk’s business outlook.
