Sandisk Stock Surges After Morgan Stanley Predicts 25% Memory Price Spike

Key Points

Sandisk (SNDK) shares jumped nearly 8% on Tuesday after Morgan Stanley called the recent pullback in memory stocks a buying opportunity, forecasting memory prices will rise at least 25% from Q2 to Q3 2026.
Analyst Joseph Moore highlighted persistent data center memory shortages and sees the cycle strengthening, with potential for even tighter supply in 2027-2028.
SK Hynix's chairman added fuel by noting AI-driven memory prices remain "abnormally high" and predicting overall memory demand could surge 50-60% next year, with AI-specific demand up 60-100%.
Wall Street expects Sandisk to report Q2 earnings of $33.38 per share on August 5, up from $0.29 a year ago, with revenue projected at $8.24 billion.
Analyst consensus rates Sandisk a Buy with an average price target of $1,842.80, though recent targets from Bank of America, Bernstein, and Citigroup range as high as $3,000.

Get Sandisk Alerts

Weekly insights + SMS alerts

Sandisk Corporation (Sandisk (SNDK)) stock climbed nearly 8% in Tuesday's session as bullish analyst commentary and a broader rally in technology stocks fueled buying in the memory-chip maker.

Nasdaq futures rose 1.30%, while S&P 500 futures gained 0.39%, supporting risk appetite across the technology sector.

Morgan Stanley Sees Memory Cycle Strengthening

Morgan Stanley analyst Joseph Moore said the recent pullback in U.S. memory stocks presents an attractive buying opportunity. He cited persistent data center memory shortages and forecast memory prices will rise at least 25% from the second quarter to the third quarter of 2026.

Moore said the current memory cycle remains driven almost entirely by data center demand, while weaker consumer electronics, PC and smartphone markets have weighed on investor sentiment. However, the firm's channel checks found no evidence that supply constraints in the data center market are easing.

The analyst also said memory shortages could become even more severe in 2027 and 2028, adding that Morgan Stanley is buying the sector on weakness.

The positive analyst commentary comes as investors remain optimistic about the next phase of the memory cycle. A stronger broader market is also boosting higher-beta technology stocks, helping Sandisk outperform the wider market before the opening bell.

AI Memory Pricing Drives Micron Sentiment

Additional support came from comments by SK Hynix Inc. (SK Hynix (SKHY)) Chairman Chey Tae-won, who said AI-driven memory prices remain "abnormally high" and argued the industry should expand supply rather than maximize profits from current shortages.

His reasoning is simple—if AI-driven price increases begin to weigh on PC and smartphone makers, or encourage new competitors to enter the market, today's supercycle could prove shorter than investors expect.

He flagged expectations for overall memory demand to rise more than 50% to 60% next year, while AI-specific demand could climb 60% to 100%.

Sandisk Earnings And Analyst Outlook

Sandisk is scheduled to report quarterly results on Aug. 5.

Wall Street expects earnings of $33.38 per share, compared with 29 cents per share a year earlier. Revenue is projected to reach $8.24 billion, up from $1.90 billion in the prior-year period.

The stock trades at about 47.5 times earnings, reflecting a premium valuation.

According to analyst consensus, Sandisk carries a Buy rating with an average price forecast of $1,842.80. Recent analyst actions include: