1 hour ago
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Harsh Chauhan, The Motley Fool
Mon, May 25, 2026 astatine 10:15 AM CDT 4 min read
Sandisk (NASDAQ: SNDK) banal has been 1 of the apical performers connected the banal marketplace successful 2026, with shares of the representation specializer rising much than 5x truthful acold this year. However, what's worthy noting is that analysts expect Sandisk's red-hot rally to proceed adjacent aft its singular rally.
Last month, equity probe steadfast Bernstein noted that this semiconductor banal could soar to $3,000. Analyst Mark Newman of the concern probe steadfast believes that the booming request for NAND flash chips and the sustained summation successful pricing volition beryllium a tailwind for Sandisk.
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Bernstein's $3,000 estimation is based connected a important summation successful the company's net implicit the adjacent 3 years, suggesting the banal volition treble from existent levels. But tin Sandisk so unrecorded up to Bernstein's expectations and present specified terrific gains? Let's find out.
Sandisk's valuation suggests that the marketplace hasn't wholly priced its maturation imaginable
Sandisk is trading astatine 50 times earnings, a flimsy premium to the tech-focused Nasdaq Composite index's price-to-earnings ratio of 43. However, this premium is justified by the exponential net maturation that Sandisk has been clocking.
The company's adjusted net successful the archetypal 9 months of fiscal 2026 (which ended connected April 3) jumped by 11.5x twelvemonth implicit twelvemonth to $31.32 per share. Even better, Sandisk's guidance of $31.50 successful net per stock for the existent 4th points toward a monolithic acceleration successful growth. Sandisk is truthful connected way to extremity fiscal 2026 with $62.82 successful net per stock (based connected the midpoint of its net guidance for the existent quarter).
That would beryllium a immense betterment implicit the net per stock of $2.99 it reported successful fiscal 2025. Analysts person besides go bullish astir Sandisk's net maturation implicit the adjacent 2 fiscal years.
The banal is trading astatine conscionable 22 times guardant earnings. Assuming Sandisk maintains this aggregate aft a mates of years and its net per stock so scope $182.89, its banal terms volition scope $4,023. So, Bernstein whitethorn beryllium underestimating this AI stock's upside potential, particularly considering that the favorable request and pricing situation driving Sandisk's phenomenal maturation is sustainable.
Solid NAND flash request volition beryllium a tailwind for Sandisk
According to information retention solutions supplier Seagate, planetary information procreation is poised to much than treble to 2.4 zettabytes (ZB) successful 2028 from 1.1 ZB successful 2024, driven chiefly by AI. So, Sandisk's addressable marketplace is connected way to support increasing astatine an unthinkable gait successful the coming years.
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