Updated
Updated · The Motley Fool · Jun 20
Wall Street Sees 22% Sandisk Downside After 4,800% Stock Surge
Updated
Updated · The Motley Fool · Jun 20

Wall Street Sees 22% Sandisk Downside After 4,800% Stock Surge

2 articles · Updated · The Motley Fool · Jun 20

Summary

  • Sandisk’s median analyst target stands at $1,702 a share versus a current $2,185, implying 22% downside even after the stock’s more than 4,800% run over the past year.
  • 28 analysts are split by how durable the rally is: Susquehanna sees 49% upside at $3,250, while Morningstar and RBC target $1,000, or 54% downside.
  • NAND prices nearly doubled in the first quarter and tripled over the past year amid an AI-driven supply shortage, helping Sandisk’s fiscal third-quarter sales jump 251% to $5.9 billion and adjusted EPS swing to $23.41 from a $0.30 loss.
  • Bears say those gains reflect another commodity-memory boom rather than a lasting edge, noting Sandisk only held market share and analysts expect the cycle to turn down in 2029.
  • Sandisk argues five new multiyear supply deals with hyperscalers make this cycle more predictable, but consensus still sees 70 times earnings as expensive despite projected 25% annual earnings growth through fiscal 2029.

Insights

Sandisk's stock has soared 4,800%. Is this an AI titan in the making or a cyclical bubble about to burst?
Wall Street predicts a crash for Sandisk. Has AI permanently broken the memory industry's historic boom-and-bust cycle?