SanDisk (NASDAQ: SNDK) has emerged as the best-performing stock in the S&P 500 so far in 2026, surging 570% year to date.
The memory chip maker has ridden a wave of intense demand for enterprise storage solutions driven by the artificial intelligence infrastructure build-out.
Wall Street’s median target price for SNDK sits at $2,500 per share, implying 57% upside from its current price of $1,590.
One analyst projects the stock could climb even further, reaching $3,040 per share by August 2027, representing a 91% gain from current levels.
SanDisk develops storage solutions based on NAND flash memory, with a sharpened focus on enterprise solid-state drives that support AI workloads.
CEO David Goeckeler has described the technology’s strategic importance, stating “NAND flash is emerging as the only economically viable solution to deliver the capacity, performance, and efficiency required to keep models accessible for real-time inference at scale.”
The company recently began sampling chips built on its BiCS10 architecture, the 10th generation of its 3D NAND flash memory technology.
BiCS10 increases bit density by 59% compared to its predecessor, while also delivering speeds 33% faster than chips built on the previous BiCS8 architecture.
SanDisk also plans to begin shipping products based on Stargate, a new controller designed to improve enterprise SSD storage density, this quarter.
In the third quarter of fiscal 2026, the company posted revenue of $5.9 billion, a 251% increase year over year, with particularly strong growth in its data center segment.
Non-GAAP earnings jumped to $23.41 per diluted share, compared to a loss of $0.30 per diluted share in the same period the previous year.
Wall Street analysts expect SanDisk’s revenue to grow approximately 155% to $50 billion in fiscal 2027, providing a strong foundation for further share price appreciation.
Goeckeler has pointed to the company’s long-term customer agreements as evidence of a structural shift, noting “these partnerships support durable, structurally higher earnings and a significantly more predictable and less cyclical business for Sandisk.”
As of April, SanDisk had signed five such long-term agreements, offering greater revenue visibility than is typical for the historically cyclical memory chip sector.
Investor concern about a potential supply glut remains a legitimate risk, as several memory chip manufacturers are building new plants that could add capacity in 2027 and 2028.
The stock currently trades at 18 times sales, though some analysts expect that multiple to compress as new supply enters the market over the coming year.
If shares re-rate to 9 times sales after fiscal 2027 results are reported, and revenue hits the consensus forecast of $50 billion, SanDisk’s market value would reach approximately $450 billion.
That scenario would represent 91% upside from the company’s current market value of $235 billion, and translate to a stock price of roughly $3,040 per share.
