SanDisk Rises 10% on 176% DRAM Price Forecast and 4.9% Supply Deficit
SanDisk shares jumped nearly 10% on forecasts of a 4.9% DRAM undersupply in 2026 and a 176% year-over-year jump in DRAM prices, with operating margins for major memory producers seen reaching 70%–80%. The company’s vertically integrated NAND capacity and rising AI server demand have driven a 1,500% rally over the past year.
1. Memory Market Outlook
Global DRAM and NAND supplies are tightening, with DRAM undersupply projected at 4.9% in 2026 and 2.5% in 2027. Conventional DRAM pricing is expected to rise 176% year-over-year, pushing operating margins for major memory producers to record highs of 70%–80%, driven by AI server and data center demand accounting for over half of DRAM consumption.
2. SanDisk Stock Performance
SanDisk shares surged nearly 10% on the day, extending an over 1,500% rally from $29.62 to $695.51 over the past year. The stock is trading above its 20-, 50- and 200-day moving averages, underscoring strong bullish momentum.
3. Company Positioning and Outlook
As a top-five NAND supplier with vertically integrated production via joint ventures in Japan, SanDisk is poised to capitalize on tight supply and rising demand. Management will report next on May 6, with analysts forecasting EPS of $10.58 and revenue of $4.37 billion, and Buy ratings with $700–$750 price targets.