Barclays recently increased its price target on Sandisk following a string of quarterly beats, noting that the company’s share price is rising faster than analysts can update forecasts. Since the spin-off from Western Digital in February 2025, Sandisk shares have climbed more than 900%, driven by strong memory demand from AI workloads. Barclays cited improving gross margins—up more than 500 basis points year-over-year in the latest quarter—and accelerated qualification timelines with major hyperscale customers as key catalysts for the rating revision.

Sandisk’s edge segment, which includes PCs and smartphones, delivered a 30% year-over-year revenue increase in Q1 fiscal 2026 and accounted for 60% of total sales. The Windows 11 migration is boosting NAND content per device, with average storage per PC rising by mid-single digits while shipments are expected to grow by a low single-digit percentage in calendar 2026. AI-capable PCs requiring at least 1 terabyte of on-device storage are driving even higher module configurations. The company’s new BiCS8 technology is improving bit density and efficiency, reinforcing Sandisk’s competitive positioning in the edge market.

Although the data center segment represented just 11% of revenue in Q1, Sandisk is working through active engagements with five major hyperscalers and anticipates multiple SSD qualifications this year. Industry research firm Mordor Intelligence projects the enterprise SSD market will expand from $49 billion in 2025 to $167 billion by 2031. Supply constraints have pushed flash memory prices up by an estimated 33% to 38% in Q1 2026, according to TrendForce. Despite the stock’s nearly tenfold rally, Sandisk trades at just 7 times sales versus an 8.7 times sector average, with consensus forecasts calling for 344% earnings growth this year and a further 67% gain next fiscal year.