Home / Business and Economy / Sandisk Stock Recovers Amid Memory Market Volatility
Sandisk Stock Recovers Amid Memory Market Volatility
8 May
Summary
- Sandisk stock initially fell 5% due to memory market concerns.
- NAND and DRAM prices have surged significantly due to AI chip demand.
- Bernstein maintains a 'buy' rating on Sandisk shares up to $1,700.
Sandisk (NASDAQ: SNDK) shares experienced a notable recovery on Friday, bouncing back after a 5% decline on Thursday. This volatility followed a report from Bernstein highlighting challenges in the spot market for computer memory. The core issue stems from a deficit in memory supply, struggling to keep pace with the high demand for artificial intelligence chips from companies like Nvidia and AMD.
This increased demand has driven up prices for NAND and DRAM, forcing some original equipment manufacturers and module houses to reduce their purchases. Bernstein's report suggested this could lead to a deceleration in price hikes into the third quarter of 2026, potentially impacting Sandisk's profit growth.
However, the situation is nuanced. DRAM prices saw a substantial 57% increase in April compared to the first quarter, and NAND prices rose by 65% to 70%. Even with potential curtailments in Q2 purchases, the sustained demand suggests major increases in both memory types will continue throughout Q2 2026. Sandisk's guidance for fiscal Q4 sales of $8 billion, along with rising gross margins and projected profits per share between $30 and $33, is considered safe.
Bernstein reiterates a positive outlook, maintaining a 'buy' rating for Sandisk stock with a target price of up to $1,700 per share, indicating confidence in the company's near-term performance despite the complex market dynamics.
