After a 1142% surge in six months, Goldman Sachs has raised the target price for Sandisk to $700

On Friday, Goldman Sachs significantly raised the target price for Sandisk stock from $320 to $700, an increase of more than 100%, while maintaining a "Buy" rating on the stock, reflecting the investment bank's optimistic assessment of the recovery prospects for the memory chip market.

Sandisk's stock price rose by more than 25% in early trading on Friday, briefly surpassing $676, but then retreated.

This adjustment follows the release of Sandisk's latest financial report. Goldman Sachs noted that despite the recent significant rise in stock prices, investor expectations for the company's performance are already high, but the quarterly results and guidance released by SanDisk still significantly exceeded market expectations.

Over the past six months, the stock has accumulated a rise of more than 1142%, showing extremely strong performance. Year-to-date, SanDisk's stock price has risen by 175%, and since its listing in February last year, the increase has exceeded 1700%.

Goldman Sachs reiterated its previous forecast in the report, believing that the sequential price increase trend for NAND flash memory chips will continue until the fourth quarter of 2026 (October to December), with particularly noticeable price increases for products from manufacturers like Kioxia.

Goldman Sachs also pointed out that after the end of 2026, as supply gradually increases, NAND prices are expected to begin to decline. This price cycle assessment is of significant reference value for investors evaluating the timing of investments in the memory chip industry.

NAND Price Increase Cycle Continues Until End of 2026

Media analysis indicates that investors are shifting funds from large technology companies that have committed to investing billions of dollars in artificial intelligence technology to direct beneficiaries of these expenditures. This includes memory chip manufacturers and other stocks related to artificial intelligence infrastructure.

Goldman Sachs believes that the continued tight supply in the industry and accelerated demand growth are likely to drive analysts' earnings expectations "significantly higher" within the next 12 months. The institution emphasized that there is "extremely limited new supply" in the NAND market for the foreseeable future, creating a very favorable market environment for Sandisk.

Goldman Sachs also stated that Sandisk's product portfolio and structure are continuously improving, giving the company a clear competitive advantage in the current market environment.

Goldman Sachs maintains its existing forecast framework, believing that the quarterly sequential increase in NAND flash prices will continue through the fourth quarter of 2026. This assessment has not changed even after Sandisk released its latest financial report, demonstrating the investment bank's confidence in the industry's supply and demand dynamics.

The price trends of major NAND manufacturers like Kioxia are seen as industry barometers. Goldman Sachs analyzes that the current price increase momentum is sufficient to sustain until the end of 2026, providing a relatively clear time window for the profit prospects of related companies.

Goldman Sachs expects that after the fourth quarter of 2026, the NAND market will reach a turning point. As major manufacturers gradually release production capacity, the increase in supply will exert downward pressure on prices

Q2 Earnings Report Exceeds Expectations, Institutions Raise Target Prices

SanDisk previously announced its Q2 fiscal year 2026 earnings report, with overall performance significantly exceeding analyst expectations. The company's earnings per share for the quarter were $6.20, far above the market expectation of $3.49, exceeding expectations by 77.65%. Meanwhile, SanDisk's revenue for the quarter reached $3.03 billion, also surpassing the previously estimated $2.67 billion.

Driven by this strong performance, RBC Capital raised SanDisk's target price to $650, noting that the NAND storage market is experiencing "extreme supply tightness," leading to unprecedented increases in average selling prices.

At the same time, Morgan Stanley also raised SanDisk's target price to $690 and maintained an "overweight" rating. The firm pointed out that the current storage industry boom cycle is the strongest in the past 30 years. Morgan Stanley also emphasized that SanDisk expects quarterly revenue growth to exceed 52% quarter-over-quarter, despite a slight decline in shipment volumes, which reflects a significant increase in product prices.

Raymond James analyst Melissa Fairbanks wrote in a report sent to clients that this round of price increases is primarily "driven by unprecedented demand and pricing effects from the data center and artificial intelligence cycles." She upgraded SanDisk's stock rating from "market perform" to "outperform" and set a target price of $725