by Ian Cooper
Semiconductor stocks are once again in focus – particularly those tied to artificial intelligence and data center expansion.
One name drawing significant attention is SanDisk, which has already delivered a massive run of more than 2,000% over the past year. However, even after that surge, analysts believe the stock may still have meaningful upside heading into its next earnings report on April 30.
All thanks to surging demand for NAND memory and improving pricing conditions.
Analysts are Bullish with Street-High Targets
Wall Street sentiment around SanDisk continues to strengthen, with multiple firms raising their price targets in recent weeks.
Bernstein, analyst Mark Newman recently issued a Street-high price target of $1,250, arguing that the company’s earnings power and the durability of the current cycle are being underestimated.
The firm points to a sharp increase in NAND pricing as a key catalyst. If average selling prices rise significantly over the next two quarters – as projected – the stock could see substantial further gains. In fact, $3,000, he noted, isn’t out of the question.
Meanwhile, Cantor Fitzgerald has also taken a more bullish stance, lifting its price target to $1,000 on the back of stronger-than-expected pricing trends in NAND flash.
Strong Numbers Reinforce the Bulls
Recent earnings support that optimism.
In its second quarter, SanDisk reported second-quarter revenue of $3.03 billion, representing a 61% increase year over year. Growth was even stronger in its data center segment, where revenue climbed 76% to $440 million.
At the same time, gross margins expanded to 50%, reflecting both improved pricing conditions and operational efficiency. Looking ahead, expectations remain elevated, with analysts forecasting more than 50% sequential revenue growth in the upcoming quarter.
Supply Can’t Keep Up with Demand
A major catalyst behind SanDisk’s momentum is the rapid expansion of artificial intelligence infrastructure. After all, NAND memory plays a critical role in data storage, speed, and performance – making it essential for modern data centers. As AI adoption accelerates, so does the need for scalable, high-performance storage solutions.
According to MIT Technology Review, there are already thousands of data centers operating across the U.S. Meanwhile, McKinsey & Company estimates that AI infrastructure investment could reach $5.2 trillion by 2030.
The firm also projects that demand for AI-ready data center capacity could grow at an annual rate of 33% through the end of the decade—putting sustained pressure on supply and supporting higher NAND pricing.
Analysts Have High Expectations with Earnings
As Sandisk nears its April 30 earnings release, expectations are running high.
Analysts are forecasting revenue between $4.4 billion and $4.8 billion, which would represent year-over-year growth of roughly 159% to 182%. EPS is projected to come in between $12 and $14, while gross margins are expected to expand further to a range of 65% to 67%.
Investors will be paying close attention to several key factors in the report. Continued growth in data center revenue will be critical in supporting the company’s valuation, as this segment is seen as a primary driver of long-term demand. Additionally, any indication that NAND flash prices are continuing to rise – or that supply shortages could persist through 2028 – would reinforce the bullish thesis.
In the end, with explosive growth, tight memory supply, and powerful demand from artificial intelligence and data center expansion, Sandisk appears well-positioned for further upside.
As the company heads into its upcoming earnings report, investors will be watching closely for confirmation that pricing strength, margin expansion, and data center growth remain intact. If those trends hold, Sandisk may not only justify its recent gains but could have significantly more upside ahead – potentially testing $3,000.
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