Shares of SanDisk Corporation (SNDK) have surged to record highs, extending a remarkable rally driven by investor enthusiasm for artificial intelligence-linked memory demand. The stock closed last week near $990 and continued its upward momentum on Monday, rising more than 7% in trading. Over the past 12 months, SanDisk has delivered an extraordinary gain of nearly 3,190%, underscoring the scale of investor interest in AI infrastructure plays.
The rally has been fueled by growing expectations that AI-driven demand for memory and storage will remain strong for years. The company, a major supplier of NAND flash memory, is seen as a key beneficiary of the rapid expansion in data centers and AI workloads. In its most recent quarter, SanDisk posted revenue of $3.03 billion, beating analyst estimates of $2.67 billion, with year-over-year revenue growth of 61%. Diluted EPS hit $6.20, blowing past the $3.31 consensus.
Melius Research initiated coverage of SanDisk with a Buy rating and a $1,350 price target, implying further upside from current levels. The firm believes the AI boom could sustain strong memory demand “through the end of the decade.” “It is time to acknowledge memory is core to our AI coverage, fitting well with AI semis, AI hardware, and hyperscalers,” wrote Melius analyst Ben Reitzes. The firm also highlighted that “memory demand compounds exponentially.”
Wall Street has taken notice. Arete Research upgraded SNDK to a “strong-buy” on April 13. Goldman Sachs raised its price target from $320 to $700 back in January. Both UBS and Cantor Fitzgerald have set targets at $1,000. The consensus rating across 24 analysts is “Moderate Buy,” though the average price target sits at $752 — below where the stock trades today.
Short interest has climbed to around 9.75 million units — about 6.6% of the float — as of mid-April, pointing to growing skepticism among some traders. Director Miyuki Suzuki sold 3,500 units on February 25 at an average price of $627.53, totaling $2.19 million, cutting her ownership stake by 26%.
Despite the sharp rally, SanDisk’s valuation remains relatively modest compared to the broader semiconductor sector. The stock trades at under 25 times earnings. Investors remain cautious about whether the current upcycle can be sustained, as the semiconductor industry has historically been characterized by boom-and-bust cycles. Melius argues that this cycle may be different, pointing to structural changes in demand driven by AI and the shift toward longer-term supply agreements.
SanDisk is set to report earnings later this week, with analysts expecting strong results. Estimates point to significant year-over-year growth in both revenue and earnings, reflecting the ongoing strength in AI-driven demand. The stock opened Monday at $989.90, just below its 52-week high of $1,002.09.
