Between November 2025 and February 2026 the company’s shares climbed 242%, driven by its spin-off from Western Digital and a tightening global supply of NAND flash memory. This rapid appreciation reflects a re-rating of the stock’s valuation multiple as investors repositioned into pure-play flash storage amid accelerating demand from data centers.

In its fiscal Q2 the firm reported revenue of $3.03 billion, up 61% year-over-year, while gross margin expanded from 32.3% to 50.9%. Adjusted EPS surged 404% to $6.20, far exceeding street estimates of $3.31. Management guided Q3 revenue to $4.4–4.8 billion with gross margins of 64.9–66.9%, implying continued margin expansion and top-line acceleration.

A pronounced NAND memory supply shortage has emerged as hyperscale AI deployments strain existing production. With competitors prioritizing high-bandwidth memory for specialized applications, producers of commodity flash have limited capacity, enabling SanDisk to leverage pricing power. Long lead times and inventory backlogs at major cloud providers underscore the structural nature of the supercycle.

In Q3 the Arizona State Retirement System acquired 40,752 shares valued at $4.57 million, marking its first disclosed position. Multiple sell-side firms have raised long-term targets – UBS to $1,000, Cantor Fitzgerald to $800 and Wedbush to $740 – reflecting consensus upward revisions. The average analyst target now stands near $543 on a “moderate buy” consensus rating, underpinning the view that further upside remains.