Particle.news
Download on the App Store

SanDisk Rallies as Analysts Lift Targets After Blowout Quarter

Multi-year deals paired with AI data center demand are reshaping SanDisk’s outlook.

Overview

  • Analysts raised forecasts after the April 30 results, with targets moving to $1,200 at Goldman Sachs, $1,700 at Bernstein, $1,470 at Raymond James, $1,550 at Bank of America, and $1,800 at Cantor Fitzgerald.
  • The stock closed at $1,409.98 on May 6, up nearly 500% for the year and about 100% over the past month as investors chased AI-focused chip and memory names.
  • SanDisk posted fiscal Q3 revenue of $5.95 billion and non-GAAP EPS of $23.41, with gross margin at 78.4% and data center sales jumping to $1.47 billion on stronger pricing and a shift to higher-value customers.
  • For the current quarter, the company guided revenue to $7.75 billion to $8.25 billion, which topped Wall Street’s prior view by a wide margin.
  • Management and research notes pointed to multi-year customer agreements that could total about $42 billion in contracted revenue with $11 billion in termination protections, improving near-term visibility in a cyclical NAND market.