Sandisk Corporation (SNDK) shares soared 14.5% on Thursday, closing at $1,881.51 after touching a 52-week high of $1,895.00 during the session. The rally was part of a broader semiconductor rebound, with the PHLX Semiconductor Index surging 7.9% for its largest single-day gain since April 9, 2025.
The stock opened at $1,672.26 and saw heavy trading volume of 13.46 million shares, according to Google Finance. In after-hours trading, shares edged up slightly to $1,882.78.
AI-Driven Demand Fuels Record Performance
Sandisk's impressive run comes on the heels of a stellar fiscal third quarter, where the company reported revenue of $5.95 billion—a 97% sequential increase and a staggering 251% jump compared to the same period last year. GAAP net income reached $3.615 billion, while non-GAAP diluted earnings per share came in at $23.41. Data-center revenue alone surged 233% quarter-over-quarter to $1.467 billion, underscoring the insatiable demand for AI-driven memory and storage solutions.
Chief Executive David Goeckeler described the quarter as a "fundamental inflection point" for Sandisk, noting that the company is now targeting higher-value end markets and securing "multi-year customer engagements backed by firm financial commitments." The company ended the third quarter with three signed New Business Model deals and has already added two more in the current fiscal fourth quarter, according to SEC filings.
Wall Street Turns Bullish
Analysts have taken notice. Bank of America analyst Wamsi Mohan reiterated a Buy rating on Sandisk and raised his price target to $2,100 from $1,550, citing strong memory pricing and contracted supply agreements. Mohan described the New Business Model deals as a "win-win as they lock in committed supply for customers." Among the 16 analysts tracked over the past three months, 14 rate the stock a Buy and 2 a Hold. The consensus 12-month price target stands at $1,843.44, with a high estimate of $3,250.
Nasdaq-100 Inclusion and Market Positioning
Sandisk is set to join the prestigious Nasdaq-100 Index, replacing Atlassian effective April 20. The index tracks the 100 largest non-financial companies listed on Nasdaq, with over $600 billion in global assets under management tied to more than 200 investment products. The inclusion is expected to boost demand for Sandisk shares from index-tracking funds.
Forward Guidance and Key Metrics
For the fiscal fourth quarter, Sandisk management guided revenue in the range of $7.75 billion to $8.25 billion, with non-GAAP diluted EPS projected at $30 to $33. The company also expects a non-GAAP gross margin of 79% to 81%. Investors are closely watching NAND pricing trends and data-center demand, as well as the long-term stability of supply contracts that could help mitigate the cyclical volatility historically associated with memory stocks.
With the AI boom showing no signs of slowing, Sandisk appears well-positioned to capitalize on the growing need for high-performance memory solutions in data centers and enterprise applications.
