SanDisk (NASDAQ: SNDK) suffered a sharp 12.6% drop on Monday, closing at $1,673.97, as broader memory and semiconductor stocks tumbled. The decline extended after hours by another 2.4%, marking a nearly 29% loss from its late-June record. The Philadelphia Semiconductor Index fell 4.8%, dragging peers like Marvell and Intel lower, while SK Hynix faced a historic 15% rout after its Nasdaq debut. Escalating US-Iran tensions and oil price surges added to the risk-off sentiment, pushing investors away from high-valuation tech shares.
Despite the sell-off, Wall Street analysts raised price targets dramatically. Evercore ISI lifted its target to $3,100 from $1,400, arguing the market underappreciates SanDisk’s earnings durability and free cash flow. Citigroup maintained a $2,500 target, Bernstein set $3,000, and Goldman Sachs increased to $2,200, all citing robust AI-driven demand for NAND flash memory. Goldman expects fiscal 2026 earnings to beat consensus by 30%.
However, a regulatory filing revealed that only $6.24 billion of SanDisk’s $41.6 billion contracted backlog is expected to convert to revenue within 12 months. This timing gap stirred near-term concern, even as the company nearly doubled quarterly revenue to $5.95 billion with data center revenue surging 233%. New BiCS10 technology offers 59% greater bit density, reinforcing long-term growth prospects. Investors now focus on the August 5 earnings report and August 13 investor day for clarity on backlog conversion and margin outlook.
