SanDisk (SNDK) Hits All-Time High, AI Storage Demand Ignites Trillion-Dollar Valuation Talk

Quick overview

SanDisk Corporation (NASDAQ: SNDK) reached an all-time intraday high of $761.52 on Wednesday before closing at $753.69, up 4.65% for the day. The market value of the flash storage behemoth has now increased by almost 1,200% in the last year, reaching about $106 billion. This has sparked a heated discussion on Wall Street regarding whether the rally has legs or has just gone too far too quickly.

The AI “Inference” Inflection Point

One of the most interesting supply-demand narratives in the semiconductor industry is the foundation of the stock’s remarkable ascent. Enterprise solid-state drives (SSDs) are being rapidly acquired by artificial intelligence data centers, which are ravenous for quick and effective storage. According to reports, Western Digital has already received definite purchase orders extending into 2028, and traditional hard-disk drives, which have long been the less expensive option, have been sold out through the end of 2027. Operators of AI infrastructure have been forced by this pressure to use NAND flash-based SSDs, which are SanDisk’s specialty.

That change has been strikingly reflected in the financial performance. In the first half of fiscal 2026, SanDisk announced adjusted earnings of $7.55 per share, which was almost 150% more than the same time the previous year. The company has projected earnings of almost $13 per share for the current quarter, up from a $0.30 loss during the same period last year. After a 61% year-over-year increase to $3.03 billion in the second quarter, revenue for the third quarter is expected to be between $4.4 billion and $4.8 billion. Sales of data centers alone increased by 76% to $440 million during that time.

Regarding the dynamic influencing such figures, CEO David Goeckeler has been straightforward. He told Reuters earlier this year that “customers prefer supply over price,” highlighting the pressing need for AI companies to lock in storage capacity for inference workloads. By extending its flash manufacturing contract with Kioxia to 2034, the company significantly extended its production runway and further solidified its supply position.

This week, the larger story of AI infrastructure was validated once again. Nvidia CEO Jensen Huang stated that “the inference inflection has arrived” and hinted that the company’s AI processors might generate at least $1 trillion in revenue by 2027.” Micron, a close competitor in the memory industry, exceeded quarterly revenue projections on Wednesday and provided a strong prognosis for the future, which is encouraging for SanDisk.

SanDisk (SNDK) Stock Technical Analysis and the Path to $1 Trillion

There is still potential for the surge, according to several analysts. Applying a typical tech sector multiple might theoretically push the stock into $3,000 or higher, given that the memory market is generally anticipated to remain supply-constrained through 2028 and that consensus profit forecasts project around $86 per share over the next two years.

Some are more circumspect. According to InvestingPro’s fair value algorithms, the stock is currently overpriced. Fair value is estimated by Simply Wall St. to be closer to $717 per share. According to Zacks, SanDisk trades at a higher forward sales multiple than its competitors in the storage industry. Analysts also highlight execution concerns, such as high customer concentration, vulnerability to changes in trade policy, and the constant possibility of a supply cycle reversal.

This week, SK Group Chairman Chey Tae-won provided a noteworthy piece of information, cautioning about a potential global wafer shortage that might last until 2030. This suggests that the supply constraints supporting SanDisk’s pricing power would not go away anytime soon.

The market is ready to pay for the story for the time being. It’s unclear if SanDisk will be able to maintain the momentum required to eventually challenge a trillion-dollar value, but few companies in the storage industry are attracting this level of interest.

ABOUT THE AUTHOR See More

Arslan Butt

Lead Markets Analyst – Multi-Asset (FX, Commodities, Crypto)

Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics. His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker. His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.

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