NEW YORK, Feb 4, 2026, 10:53 EST
SanDisk Corp shares dropped roughly 11% Wednesday morning, erasing part of a recent sharp rally that had sparked a surge of bullish analyst recommendations. The stock slipped 11.2% to $617.88.
The swing is crucial because investors view SanDisk as a pure play on AI-driven demand for NAND flash—the storage memory powering phones, PCs, and growing in data centres. Shares surged over 16% Monday following the company’s positive update, with brokers pushing price targets up since.
Shares climbed 4.6% on Tuesday following Citigroup’s boost of the price target to $750, while maintaining a buy rating. The stock hit a high of $725, with around 30.7 million shares traded—about 63% above the usual daily volume, according to MarketBeat.
On Feb. 2, Citigroup’s Asiya Merchant bumped her price target to $750 from $490, keeping a buy rating intact, according to a report by GuruFocus. Price targets reflect where analysts expect a stock to trade, usually over the next year.
On Feb. 2, Barclays analyst Thomas O’Malley raised his price target for SanDisk to $750 from $385 but maintained an Equal-Weight rating, GuruFocus reported. The firm’s flash chips are primarily made in Japan via a joint venture with Kioxia, according to the report.
On Feb. 2, Bernstein SocGen Group bumped its price target sharply to $1,000 from $580. Cantor Fitzgerald, Mizuho, and Jefferies followed suit, raising their targets after the latest quarter and updated guidance, according to Investing.com. Bernstein attributed the boost to a “very strong pricing environment.” Investing.com
SanDisk, now independent after splitting from Western Digital last year, reported fiscal Q2 revenue of $3.03 billion, with adjusted (non-GAAP) earnings at $6.20 per share. The company projects fiscal Q3 revenue between $4.4 billion and $4.8 billion, and adjusted EPS ranging from $12 to $14. Gross margin is expected to hit 65% to 67%. CEO David Goeckeler highlighted the quarter’s momentum, pointing to “accelerating enterprise SSD deployments, and strengthening market demand dynamics.” SEC
On the earnings call, CFO Luis Visoso noted the company is still hashing out capital spending plans despite the recent market upheaval. “We’re making progress, and we’re getting to a place where we can justify the CapEx,” he said, referring to capital expenditure. The management team also revealed they secured one long-term agreement (LTA) that involved an upfront payment and are looking into multi-year supply deals with data centres. Investing.com India
The storage and memory sector has seen a broad rally, buoyed by strong gains from Western Digital, Seagate Technology, and Micron Technology. Reuters reported that SanDisk and Kioxia have extended their supply deal through 2034. Meanwhile, Morgan Stanley analysts suggest elevated earnings could last over a year, provided AI demand remains robust.
Flash memory remains notoriously cyclical. If cloud spending falters or supply outpaces demand, prices can drop sharply—and margins slip just as fast. SanDisk’s action this week highlights how fragile the balance is between strong momentum and a sudden drop-off.
