Sandisk Comeback Soars Fivefold on AI Memory Boom

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•  03 Nov 2025
 

•   SNDK  
   
  +0.76%

After nearly a decade off Wall Street, $SNDK is back and making a statement few traders expected. From a lukewarm $5 billion market cap shortly after its 9-month return, the stock has skyrocketed fivefold in just three months to around $30 billion, fueled by a surge in demand for AI-driven data storage. For investors watching the semiconductor space, this is a textbook case of timing, technology, and market sentiment converging.

Sandisk rise isn’t happening in isolation. The appetite for high-speed NAND memory—critical for AI workloads and enterprise data centers—is pushing the entire sector forward. Legacy players like Samsung, SK Hynix, Micron, and Kioxia are ramping up investments, building new factories, and rolling out advanced QLC and PLC memory chips. Micron DRAM sales jumped 25%, SK Hynix reported an 80% surge in operating profit, and Samsung invested over $20 billion expanding production lines. The once-volatile memory market appears to be entering a more stable phase, anchored by the structural growth of AI applications.

Sandisk recent quarterly report for FY2025 reflects this momentum. Revenue reached $1.90 billion, up 12% from the prior quarter and 8% year-over-year. While the company still reported a GAAP loss of $23 million, Non-GAAP earnings hit $0.29 per share, surpassing expectations. Stronger NAND pricing and surging AI-driven storage demand lifted gross margins from 22.5% to 26.2%, signaling newfound pricing power. Sandisk attributes much of the growth to its transition to BiCS8 3D NAND and high-bandwidth flash tailored for AI workloads. Looking ahead to Q1 2026, management forecasts $2.10–2.20 billion in revenue and $0.70–0.90 Non-GAAP EPS, underlining confidence that AI adoption will continue to drive demand.

Analysts are taking notice. Morgan Stanley raised its target to $230 from $96 while keeping an Overweight rating, noting the meteoric rise leaves limited room for error. Mizuho set a $215 target, and Jefferies came in at $180, all emphasizing structural demand for NAND and the AI storage boom. A September report revealing massive SSD orders from cloud giants like Amazon, Microsoft, and Google helped ignite the rally, confirming that this is not a fleeting spike but a long-term shift in enterprise storage needs.

Sandisk is also eyeing consumer markets, recently launching a USB-C drive line in partnership with Crayola at Walmart, diversifying beyond enterprise sales. Yet, the core strength remains in data center storage, and the primary challenge continues to be sustaining profitability amid capital-intensive tech investments. Historically, the memory market has been cyclical, but today AI-driven demand looks more resilient and structural, a factor traders can’t ignore.

Trading at a $30 billion market cap and up nearly 500% since the start of the year, SNDK exemplifies how innovation, timing, and structural demand can reshape investor expectations. For those following semiconductors, AI infrastructure, or memory stocks, the story is just beginning—explore the full analysis to see where Sandisk might go next.

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