SanDisk (SNDK) Stock: This Memory Maker Just Became the S&P 500’s Hottest Stock

TLDR

• SanDisk stock jumped 9.5% to a new all-time high, with shares reaching $446.42 after gaining 88% year-to-date in 2026 alone
• Citi analyst raised price target from $280 to $490 while maintaining a Buy rating, citing strong demand and tight supply conditions expected through 2027
• Wall Street expects Q2 earnings of $3.32 per share on January 29, up from $1.23 last year, with revenue forecast at $2.63 billion
• The stock has surged over 1,100% since spinning off from Western Digital in February 2025, making it one of the market’s top performers
• Demand remains unconstrained with mid-20s% growth driven by AI infrastructure needs and Nvidia’s new Rubin chip requiring more flash storage

SanDisk stock climbed 9.5% on Tuesday to hit a fresh all-time high of $446.42. The data storage company added another 1% in after-hours trading.

Sandisk Corporation, SNDK

The rally makes SanDisk the top performer in the S&P 500 for the session. Year-to-date, shares have already gained 88% in 2026.

The latest surge came after Citi analyst Asiya Merchant raised her price target on the stock. She moved it from $280 to $490 while keeping her Buy rating.

The company reports Q2 earnings on January 29. Merchant expects the tight supply and strong demand environment to stay in place through 2027.

Wall Street analysts forecast earnings of $3.32 per share for Q2. That’s up sharply from $1.23 in the same quarter last year.

Revenue is expected to reach $2.63 billion for the quarter. The company has seen unconstrained demand with growth in the mid-20% range.

AI Infrastructure Fuels Memory Stock Rally

Citi’s price target upgrade came as part of its 2026 outlook for technology hardware. Hyperscaler data center spending remains strong across the sector.

That spending supports demand for power, storage, connectors, and fiber. SanDisk benefits directly from growing data center and enterprise storage needs.

The company isn’t changing its supply plans despite market uncertainty. Instead, it’s balancing short-term profits with long-term growth goals.

Nvidia’s new Rubin chip has added fuel to the rally. The company discussed a memory storage platform for the chip at CES earlier this month.

The platform adds more flash storage to AI infrastructure. More SSD demand would create even tighter supply conditions, according to Morningstar analyst William Kerwin.

Record-Breaking Performance Since Spinoff

SanDisk has surged over 1,100% since spinning off from Western Digital last February. That makes it one of the market’s biggest breakout stories.

The only other current S&P 500 stock to climb 88% or more in January was Carvana in 2023. Carvana wasn’t part of the index at the time, according to Dow Jones Market Data.

Wall Street rates SanDisk as a Moderate Buy. The consensus includes 11 Buy ratings and four Holds over the past three months.

The recent rally has pushed shares well above the average analyst price target of $357.53. That suggests more than 20% downside from current levels.

Citi noted that other memory and storage stocks could offer better upside potential. The firm prefers hard disk drive makers like Western Digital and Seagate Technology.

These companies may have more room to run as drive prices increase. But Sandisk remains on the firm’s watch list heading into earnings.

The transition from training AI models to inferencing will support long-term demand. This shift involves applying AI models to data rather than just building them.

Coupled with limited supply, SanDisk has conditions to expand profit margins. The favorable supply-and-demand dynamic is expected to persist through 2027.

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