SanDisk (SNDK) Stock: Morgan Stanley Goes All In With 75% Price Target Hike

TLDR

• SanDisk stock jumped over 3% in pre-market trading after Morgan Stanley raised its price target by 75% from $273 to $483
• Analyst Joseph Moore cited strong NAND market fundamentals driven by enterprise solid-state drive demand
• Two major cloud customers ordered nearly 10% of global NAND supply for 2025, tightening the market
• Moore increased his March quarter revenue estimate to $2.94 billion and non-GAAP EPS forecast to $5.71
• Wall Street expects Q2 FY26 earnings per share of $3.58, up from $1.23 in the year-ago quarter

SanDisk shares climbed more than 3% in pre-market trading Tuesday after Morgan Stanley analyst Joseph Moore dramatically increased his price target on the data storage company. Moore, who holds a five-star rating, lifted his target from $273 to $483 while maintaining his Buy rating.

Sandisk Corporation, SNDK

The move comes just days before SanDisk reports its Q2 FY26 earnings on January 29. Wall Street analysts are expecting earnings per share of $3.58, a sharp increase from $1.23 in the same quarter last year.

Moore pointed to strong fundamentals in the NAND market as the key driver behind his optimistic outlook. Enterprise solid-state drives are seeing a surge in demand that’s reshaping the entire supply chain. Two major cloud customers have already locked in nearly 10% of global NAND supply for 2025.

That buying spree has created tighter supply conditions across the board. Consumer segments are feeling the pinch too. The result is upward pressure on NAND prices throughout the market.

NAND flash memory powers storage devices from SSDs to smartphone storage to USB drives. SanDisk ranks among the top producers of NAND flash memory chips.

Revenue Estimates Get a Major Boost

Moore didn’t just raise his price target. He also sharply increased his financial projections for SanDisk’s March quarter. His new revenue estimate stands at $2.94 billion with non-GAAP EPS of $5.71.

The revised figures reflect Moore’s updated assumptions about NAND pricing. He now expects NAND average selling prices to jump 20% quarter-over-quarter. That’s double his previous estimate of a 10% increase.

Moore also adjusted his outlook for bit shipments. He now forecasts a 6% sequential decline, less severe than his earlier projection of an 8% drop.

Price Target Still Below Current Trading Price

Even with the 75% increase, Moore’s new price target sits below SanDisk’s current trading price around $473. His forecasts remain in line with management’s guidance for the December quarter. Moore suggested this conservative stance could leave room for upside surprises.

Wall Street maintains a Moderate Buy rating on SNDK stock. Over the past three months, analysts assigned 11 Buy ratings and four Hold ratings. The average price target of $384.20 implies roughly 18% downside from current levels.

The consensus price target trails well behind the stock’s recent performance. SanDisk posted a 1,255% gain over the last 12 months. Most of that rally occurred since early September.

SanDisk joined the S&P 500 in November after its remarkable run. The stock claimed the title of best performer in the index for the year. What was once known primarily as a USB thumb drive maker has transformed into a key player in the AI data center boom.

Enterprise solid-state drives use more NAND than other storage products. These bulky data storage devices have consumed massive amounts of chip supply as AI infrastructure expands.

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