Sandisk stock has rallied 70% in just 11 trading days to start 2026, underpinned by a pronounced shortage in the NAND flash memory market. As AI infrastructure projects proliferate, enterprises are scrambling to secure high-performance storage, driving up NAND prices and leaving suppliers like Sandisk uniquely positioned to capitalize on constrained supply. Since its separation from Western Digital in February 2025, the company’s shares have climbed more than 700%, reflecting both the intensity of current demand and the strategic benefits of its narrow focus on flash memory.

The February 2025 spin-off from Western Digital created two independent entities—one focused on hard-disk drives and the other, Sandisk Corporation, dedicated exclusively to flash memory. This corporate restructuring was based on divergent market dynamics, growth trajectories and capital requirements for HDDs versus NAND. Freed from the legacy HDD business, Sandisk has concentrated investment and R&D on non-volatile flash, enabling rapid scaling of production and close partnerships with hyperscale data-center operators and AI platform providers.

Analysts expect Sandisk’s fiscal 2026 sales to surge 42% year-over-year to $10.45 billion, up from $7.36 billion in fiscal 2025, with a further increase of 26% projected for fiscal 2027 to $13.15 billion. On the bottom line, EPS are forecast to jump 350% this year to $13.46, up from $2.99, and then climb another 93% in fiscal 2027 to $25.94. Quarterly data-center revenue grew 26% sequentially to $269 million in the period ended October 3, signaling broadening adoption of Sandisk’s high-speed storage solutions by enterprise and cloud customers.

Despite its meteoric rise, Sandisk trades at a reasonable 30-times forward earnings multiple, roughly in line with peers and the industry average. The company holds a Zacks Rank #1 (Strong Buy) based on consecutive upward revisions to earnings estimates—more than 100% higher over the past three months for both fiscal 2026 and 2027. In addition, Citi analysts recently raised their 2026 EPS estimate to $17.78 and boosted their price target by over 70%, citing solid hyperscaler demand and favorable supply/demand dynamics for NAND through next year.