SanDisk Shares Soar 3,400% in One Year as AI Demand Fuels Flash Memory Rally

SanDisk shares soar 3,400% in one year. Can the rally sustain its momentum?

US stock futures edged higher after a tech-led selloff, as investors monitored Iran tensions and key retail earnings for clues on consumer health. SanDisk Corp has become one of the most dramatic winners of the AI trade, with the stock up more than 3,400% in one year as investors bet on rising demand for flash memory used in data centres and AI inference workloads. The stock has gained 628.74% so far this year, which makes it the best-performing stock in the S&P 500 in 2026, ahead of Dell Technologies, which is up nearly 300%. Over one year, SanDisk has returned 3,415%, while its three-year gain stands at 4,580%. According to a report on TheStreet, JPMorgan has reinstated coverage on SanDisk with an Overweight rating and a price target of $2,250 on August 16. JPMorgan's bullish view rests on three broad points: SanDisk's role in the global NAND flash market, rising AI-led demand for enterprise data centre storage, and a new business model that gives the company more earnings visibility. US MarketsPowered By As on 19 Aug 2026, 01:30 AM IST S&P 500 Top Gainers Targa Resources297.77(7.13%) Insulet148.03(5.96%) Ulta Beauty516.74(4.75%) Intuit350.41(4.41%) Gainers" S&P 500 Top Losers Seagate Technology Hldgs903.68(-9.16%) Teradyne404.29(-8.77%) Coterra Energy32.56(-8.62%) Jabil338.62(-8.45%) Losers" Why JPMorgan is bullish? SanDisk is one of the top five global NAND flash memory suppliers. NAND flash is used in storage products across phones, computers, servers and data centres. The investor focus now is on enterprise flash storage, where AI inference workloads are expected to drive stronger demand. Also Read: Global Market: Japan shares slide as chip stocks tumble on global tech rout At its Investor Day, the company projected the enterprise data centre flash total addressable market to expand to 1.2 zettabytes by 2030. A key driver is AI inference, including storage needs linked to KV cache workloads. The market is also paying attention to SanDisk's new business model. The company has signed NBM agreements with eight key customers. These agreements include committed volumes and minimum financial guarantees. SanDisk's agreements now cover about 50% of bits in fiscal 2027 and roughly two-thirds of bits in fiscal 2028. This gives investors more confidence that future demand and revenue will be less volatile than in past cycles. Technology is another reason behind the rally. SanDisk has outlined its BiCS9 and BiCS10 QLC NAND roadmap. BiCS10 is expected to deliver a 60% increase in bit density compared with BiCS8. Higher density helps reduce cost per bit and allows the company to offer more storage in smaller physical space. This becomes more useful as data centres try to manage rising AI storage needs. SanDisk is also working on High Bandwidth Flash technology aimed at AI inference applications. The company is trying to show that it is not only benefiting from better NAND pricing, but also building products for the next phase of AI infrastructure demand. The sharp rise in the stock means expectations are now high. A 3,400% one-year gain leaves less room for disappointment if demand slows, pricing weakens or the company fails to deliver on its technology roadmap. Still, JPMorgan's $2,250 target shows that some on Wall Street believe the rally may have further to run. The bet is that AI demand is changing the storage market, and SanDisk is one of the few large players positioned to benefit directly. (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)

What's Going On With Sandisk Stock Wednesday? - SanDisk (NASDAQ:SNDK)

From Commodity to Cash Machine? Sandisk Targets 80% Margins in AI Storage Boom Sandisk Corp. (NASDAQ:SNDK) is betting that surging artificial intelligence demand and a new contract-based sales model can make the notoriously cyclical NAND memory business more predictable. At its 2026 Investor Day, Sandisk outlined a fiscal 2028 through fiscal 2030 model targeting mid-to-high-teens revenue growth. It also expects non-GAAP gross margin of about 80%, non-GAAP operating margin near 75%, and adjusted free cash flow margin of roughly 50%. Counterpoint Research analyst Neil Shah said the strategy could reshape Sandisk's business as AI shifts more NAND demand toward higher-value enterprise storage. Sandisk Locks In AI-Era NAND Demand A key part of that strategy is Sandisk's New Business Model, or NBM. The company has signed eight customers under agreements covering about 50% of its NAND bits in fiscal 2027 and roughly two-thirds in fiscal 2028. The multi-year agreements include committed volumes, minimum financial guarantees and structured pricing with fixed and variable components. Sandisk expects the framework to become its predominant way of doing business. The shift comes as AI drives a sharp increase in enterprise storage demand. Counterpoint said enterprise SSDs accounted for 48% of global NAND bit shipments in the second quarter of 2026, nearly double the 26% share a year earlier. Sandisk estimates AI data centers alone could consume 1.2 zettabytes of NAND bits by 2030 as AI inference and KV cache workloads increase storage requirements. Media Why Sandisk Bulls Think the Old Memory Boom-And-Bust Playbook Is Dead Sandisk (SNDK) stock jumps nearly 6% premarket as analysts highlight multi-year AI demand, expanding margins, and major buyback plans. 4 min read Read this article Competition Remains A Risk However, Counterpoint flagged a major challenge. Sandisk's NAND revenue share has remained between 12% and 13% for five consecutive quarters, while China's YMTC increased its share from 8% to 13%. Latest Private Market Opportunities Join 400,000+ Investors That means Sandisk's growth thesis relies heavily on a larger NAND market, higher pricing and a richer product mix rather than major market-share gains. Counterpoint also cautioned that Sandisk's contracts have yet to face a real NAND downturn. Still, the firm expects tight supply conditions to persist over at least the next 18 months. Meanwhile, Sandisk is developing technologies including High Bandwidth Flash and 3D Matrix Memory. Counterpoint views HBF as a longer-term opportunity rather than a near-term revenue driver. It noted that Sandisk's fiscal 2028 through fiscal 2030 model does not appear to depend on the technology. Stock Performance And Technical Analysis Sandisk stock rose nearly 2% in Wednesday's premarket session after falling 9.01% Tuesday. Nasdaq futures slipped 0.03%, while S&P 500 futures edged 0.01% higher. The stock appears to be staging a rebound after Tuesday's selloff. The stock also remains firmly above its longer-term trend indicators. Sandisk trades 78.3% above its 200-day simple moving average and 15.4% above its 100-day SMA. However, shares remain about 1.2% below the 50-day SMA. Momentum is improving, with the MACD above its signal line and a positive histogram. Still, the 20-day SMA remains below the 50-day SMA, signaling some near-term pressure. Resistance sits near $1,696.50, while support stands near $1,485. Price Action SNDK Stock Price Activity: Sandisk shares rose 1.86% to $1,655.99 in Wednesday's premarket trading, according to Benzinga Pro data. Image via Shutterstock Market News and Data brought to you by Benzinga APIs To add Benzinga News as your preferred source on Google, click here.