SanDisk (NASDAQ:SNDK) stock has rebounded and flipped an important resistance level as memory companies stage a comeback. SNDK jumped to $1,662, its highest level since July 23rd. It has soared by 65% from its lowest level in July.
Analysts are Optimistic About SanDisk Stock as AI Spending Continues
Top analysts tracking SanDisk are optimistic that the stock has more upside to go. Benzinga data shows that the consensus SNDK stock forecast is $2,000, up by 22% from the current level.
UBS Group has a price target of $1,750, while Mizuho raised its target to $1,900. Analysts at Goldman Sachs and JPMorgan have set targets above $2,000, while Cantor Fitzgerald has the most bullish outlook, with a price target of $2,900.
These analysts boosted their targets after the company published its financial results, in which it focused on its multi-year deals. The company also unveiled its new sustainable financial model, in which it expects its revenue to grow by mid-to-high teens through 2030, with operating margins being approximately 75%.
SanDisk’s revenue jumped by 51% to $8.97 billion QoQ in the fourth quarter, helped by volumes and pricing. Its fiscal 2026 revenue jumped by 175% YoY to $20.25 billion, while management boosted its forward guidance. It expects its first-quarter revenue to be between $10.3 billion and $10.8 billion. The real figure will be higher than that as the company has become highly conservative.
The company also announced an additional $14 billion share repurchase program, bringing the total remaining authorization to $15.5 billion.
Most importantly, SanDisk has changed its business model, a move aimed at limiting the impact of the cyclical nature of the memory industry. It has announced ten new agreements with top companies, setting the floor and ceiling of its memory products.
SanDisk is still trading at a bargain, considering that its forward price-to-earnings ratio stands at 7.64, much lower than the technology sector median of 24. This multiple is much lower than other top companies like Nvidia (NASDAQ:NVDA) and Micron (NASDAQ:MU).
SNDK Stock Has Moved Above a Key Resistance
The daily chart shows that the SNDK share price has dropped sharply from its all-time high. It formed a descending channel, which was an important part of the bullish flag pattern. It has now moved above this pattern’s upper side, confirming the bullish outlook.
The stock has moved above the 50-day Exponential Moving Average (EMA) and the strong, pivot, reverse level of the Murrey Math Lines tool. Therefore, the stock will likely continue rising, potentially to the year-to-date high of $2,355.
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