SanDisk surged 4% in premarket trading on July 14 after Wall Street analysts raised price targets on the memory-chip maker, with Goldman Sachs nearly doubling its 12-month target to $2,200 from $1,200 as the company benefits from tight NAND supply and surging AI datacenter demand.
Goldman Sachs raised its price target on July 5, citing expectations for very strong NAND supply conditions and SanDisk’s improved product mix through eSSD design wins at major hyperscaler customers. The firm’s non-GAAP earnings-per-share estimate for calendar 2026 is more than 30% above the Street consensus, according to The Street.
The move follows SanDisk’s record-breaking fiscal Q3 2026 results announced April 30. Revenue hit $5.95 billion, up 251% year-over-year and 97% sequentially, far exceeding the company’s own guidance of $4.40 billion to $4.80 billion.
Datacenter revenue was the standout, climbing 645% year-over-year to $1.5 billion and 233% sequentially, reflecting the structural shift of memory-chip production toward AI infrastructure. The company reported non-GAAP EPS of $23.41, beating analyst estimates by nearly 60%.
The tight NAND supply environment is expected to persist well into 2027, driven by limited supply additions across the semiconductor industry and surging demand from data centers building AI training and inference infrastructure. IDC forecasts 2026 NAND supply growth at just 17% year-on-year, below historical norms, while AI infrastructure is projected to consume up to 70% of all memory chips produced in 2026, according to Blocks & Files.
SanDisk has shifted to a new business model built on multi-year customer agreements with firm financial commitments. More than one-third of fiscal 2027 bit output is already locked in under these New Business Model agreements, removing cyclical pricing risk that has historically capped memory-stock valuations. CEO David Goeckeler stated in the Q3 earnings release that the company is advancing to “a new business model built on multi-year customer engagements backed by firm financial commitments,” marking what he called “a fundamental inflection point” for the company.
For Q4 fiscal 2026, SanDisk guided revenue of $7.75 billion to $8.25 billion and non-GAAP EPS of $30.00 to $33.00, representing another massive sequential step. The company will report Q4 results on August 5, with an investor day following on August 13, providing two near-term catalysts for management to quantify the long-term agreement pipeline and financial targets.
Sources
- The Street — Goldman Sachs price target increase to $2,200, NAND supply outlook, and earnings estimates
- SanDisk investor relations — Q3 FY2026 revenue, datacenter growth, and CEO commentary
- Blocks & Files — NAND supply forecast through 2028
- IDC — 2026 NAND supply growth projection at 17% year-over-year
