Storage technology leaders SanDisk (SNDK) and Western Digital (WDC) are riding a massive wave of AI-driven demand, with Wall Street analysts dramatically raising their price targets on both stocks. The upgrades reflect a persistent supply shortage in NAND flash and HDD storage, fueling triple-digit revenue growth and record earnings.
SanDisk's Meteoric Rise
SanDisk, which relisted on the Nasdaq in February 2025 at around $35, has surged approximately 4,885% to trade near $1,745. After a 14% dip in the previous session, the stock rebounded 4% in Monday's premarket, supported by broader tech strength. The company posted Q4 revenue of $5.95 billion — up 97% sequentially — and non-GAAP EPS of $23.41, a 247% jump. With over $11 billion in financial guarantees and a $42 billion backlog from data center contracts, CEO David Goeckeler emphasized the market will remain "undersupplied for a long period of time." Analysts now expect Q2 2026 EPS of $33.38 on revenue of $8.24 billion. Bernstein leads the bull camp with a $3,000 price target, while Bank of America and Citi both target $2,500.
Western Digital's Strong Quarter and Upgrades
Western Digital also beat expectations, delivering Q4 EPS of $2.72 versus the $2.39 consensus on revenue of $3.34 billion (up 45.5% year-over-year). Bank of America raised its target from $610 to $732, citing HDD demand outpacing supply, while Cantor Fitzgerald went even further, boosting its target from $660 to $900. The firm pointed to the semiconductor industry's potential to reach $3 trillion by 2029. Institutional ownership stands at 92.51%, with BlackRock as the top holder. WDC carries a P/E of 32.18 and recently hiked its quarterly dividend to $0.15.
While neither stock is directly tied to cryptocurrencies, the broader tech boom could provide a positive backdrop for risk assets, including digital currencies. However, the immediate impact on crypto markets remains neutral, as these developments are specific to traditional storage equities.
