SanDisk (SNDK) Stock Falls as Samsung Accelerates HBM4 Production

TLDR

• SanDisk (SNDK) stock dropped 2.5% Monday and another 1% after hours despite Goldman Sachs analyst maintaining bullish outlook with $700 price target
• Company reported fiscal Q2 2026 revenue of $3.025 billion, up 61% year-over-year, beating estimates by $340 million with EPS of $6.20
• Stock has surged over 1,500% in the past twelve months, including a 145% jump in January alone
• Samsung’s early mass production of HBM4 memory chips raised concerns about increased supply competition in the memory market
• Goldman Sachs analyst raised EPS target 200% to $32 while predicting tight supply and accelerating demand will drive further gains

SanDisk (SNDK) stock retreated 2.5% during Monday’s trading session. The shares fell another 1% in after-hours trading.

Sandisk Corporation, SNDK

The pullback came after reports that Samsung plans to begin mass production of HBM4 memory chips later this month. The news raised questions about supply dynamics in the memory chip market.

Despite the recent dip, SNDK shares have climbed over 1,500% in the past year. January alone saw the stock rocket 145% higher.

Goldman Sachs analyst James Schneider remains confident about the company’s prospects. He upgraded his price target to $700, implying 20% upside from current levels.

The company’s fiscal Q2 2026 results backed up the analyst’s optimism. Revenue hit $3.025 billion, representing 61% year-over-year growth.

SanDisk beat revenue expectations by $340 million. The blowout quarter extended to the bottom line as well.

Diluted earnings per share came in at $6.20. That figure crushed analyst estimates by $2.66.

Strong Guidance Points to Continued Momentum

Management issued fiscal Q3 revenue guidance of $4.4 to $4.8 billion. The forecast suggests executives expect the growth story to continue.

Schneider highlighted several factors supporting SanDisk’s trajectory. Strong pricing expectations combined with favorable demand and supply trends are creating tailwinds.

The analyst also pointed to Nvidia’s recent storage controller announcement. The development is expected to boost demand for memory products.

The Goldman analyst raised his EPS target by 200% to $32 from $14.55. He kept his price-to-earnings multiple at 22x unchanged.

Wall Street Weighs In

While Samsung’s HBM4 production plans grabbed headlines, SanDisk doesn’t manufacture HBM chips. The company is developing high-bandwidth flash NAND memory products designed for AI data centers.

Micron (MU) also fell 2.9% Monday on the Samsung news. The U.S. chipmaker directly competes in the HBM market.

The broader concern is that Asian production giants are ramping up supply in response to elevated prices. Memory chip pricing that quintupled SanDisk’s profit over the past year could face pressure.

Schneider expects tight supply and accelerating demand to push earnings estimates higher over the next twelve months. He maintains a Buy rating on the stock.

Wall Street broadly agrees with the positive assessment. The stock carries 11 Buy ratings and 4 Hold ratings from analysts.

The average twelve-month price target stands at $637.33. That represents potential upside of roughly 9% from current trading levels.

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