U.S. memory chip stocks staged a powerful rally Monday (Nov. 10), with SanDisk (SNDK-US) leading the charge. The flash storage giant’s shares jumped 11.89% to $267.95, briefly touching an all-time high of $270.91 during the session. The move capped a remarkable run, with SanDisk’s stock price rising fivefold in just two months.
Price Hikes Fuel Momentum
The surge followed reports that SanDisk raised its NAND flash contract prices by as much as 50% in November. This marks the company’s third price increase in 2025, after a 10% hike in April and another 10% increase in September. The aggressive pricing strategy has set the tone for the broader industry, prompting rivals like Micron Technology (MU-US) to follow suit.
The latest hike comes amid a global supply-demand imbalance, with AI-driven demand for flash memory outstripping available capacity.
Sector-Wide Gains
SanDisk’s rally lifted the entire U.S. memory chip sector:
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Micron Technology (MU-US): +6%
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Seagate Technology (STX-US): +5%
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Western Digital (WDC-US): +7%
The gains highlight investor enthusiasm for storage suppliers benefiting from the AI boom.
Analyst Upgrades Add Fuel
Several investment banks raised their targets following SanDisk’s fiscal Q1 2026 earnings beat. The company reported revenue, margins, and EPS well above expectations, and issued stronger guidance for Q2.
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Goldman Sachs raised its 12-month target from $140 to $280, boosting EPS forecasts for 2025–2027 by 69–85%.
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Bernstein SocGen Group went further, hiking its target from $120 to $300 while maintaining an "outperform" rating. Bernstein cited resilient pricing, reduced inventories, and robust demand.
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Jefferies and Mizuho Securities also raised targets, citing favorable pricing and AI server demand.
Bernstein now expects SanDisk EPS to reach $14.10 in FY2026 and $28.15 in FY2027, reflecting confidence that strong pricing will persist through late 2026.
Industry Context
The AI wave is reshaping the semiconductor landscape. Global hyperscale providers like Amazon and Meta are pouring capital into AI infrastructure, driving demand for high-performance memory. Meanwhile, overseas manufacturers such as Samsung, SK Hynix, and Micron are focusing capex on HBM (High Bandwidth Memory) chips, leaving traditional NAND supply constrained.
Industry analysts expect the supply-demand gap in conventional storage to last well into next year, supporting elevated pricing.
The Bottom Line
SanDisk’s record-setting rally underscores how AI-driven demand and aggressive pricing strategies are transforming the memory chip sector. With analysts racing to raise targets and investors piling in, the company has become a focal point of the semiconductor boom.
The question now is whether pricing power can hold through 2026 as capacity expansions come online. For the moment, SanDisk’s momentum shows no signs of slowing.