SanDisk Corporation (SNDK) reported quarterly revenue of $8.97 billion, a 51% sequential increase and a 372% year-over-year surge, while full-year revenue reached $20.25 billion, up nearly 175%. Despite the earnings beat, the stock price declined. Bank of America maintains a bullish stance, setting a $2500 price target, citing a larger and more durable earnings base. Other Wall Street firms, including Goldman Sachs, Citi, Barclays, and Bernstein, also issued price targets between $2100 and $3000. Risks include the US-Iran conflict and questions about the sustainability of AI infrastructure spending.
SanDisk Corporation (SNDK) reported stellar quarterly earnings last week, with revenue rising 51% from the previous quarter and 372% from a year earlier to $8.97 billion. Full fiscal year revenue rose nearly 175% to $20.25 billion.
Despite reporting higher-than-anticipated revenue, SNDK stock price took a hit immediately after. Bank of America remains bullish on the company, predicting the stock will reach $2500.
SanDisk’s revenue surge comes amid a larger memory chip demand driven by the AI boom. Increased spending on data centers has led to a global memory shortage, benefiting manufacturers.
Investor skepticism persists because memory markets have historically been cyclical. According to Bank of America, SanDisk’s earnings base is getting larger and a lot more durable.
The financial institution also does not see any evidence of pricing and profitability being at a peak. According to SeekingAlpha data, SanDisk has seen a 2879.13% yearly price return, compared to industry giant Micron (MU) at 684.46%.
Goldman Sachs predicts SNDK will hit $2200, representing an 81.49% upside from current levels. Citi anticipates the stock to reach $2100, while Barclays predicts $2300.
Bernstein is among the most bullish, expecting SanDisk stock prices to breach the $3000 level. The outlook is bullish, but risks remain.
The ongoing conflict between the US and Iran could present supply chain problems. Many believe the increased spending on AI infrastructure is not sustainable, which could negatively impact memory companies.
