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Sandisk forecasts exceptional earnings growth, backed by AI-driven demand and bullish analyst targets.
The rise of artificial intelligence (AI) has transformed NVIDIA Corporation (NVDA - Free Report) into the world’s most valuable company, with its stock hitting record highs. Incessant demand for its cutting-edge chips and CUDA software platform has fueled exceptional growth, with the company consistently beating quarterly expectations.
Despite these strong fundamentals, NVIDIA’s gains have been muted this year, up only 10.9%, reflecting already high investor expectations. Given the company’s massive scale, concerns have emerged about its ability to sustain rapid growth. At the same time, the possibility of a slowdown in AI spending by hyperscale cloud providers, growing competition from peers, and tighter U.S. export restrictions on advanced chips to China could weigh on NVIDIA’s future profit margins, even as AI chip demand remains strong.
Some investors may now feel that they have missed NVIDIA’s remarkable rally. However, they should search for opportunities elsewhere in the AI ecosystem. They may currently consider memory chipmaker Sandisk Corporation (SNDK - Free Report) , whose shares have soared 573.7% year to date and appear well positioned for further gains. Let’s explore why Sandisk could be the next big winner –
Sandisk: A Potential AI Memory Leader Poised for Breakout Growth
Surging demand for Sandisk’s AI-related memory solutions and a tight supply environment fueled strong pricing power and bolstered the company’s growth prospects.
Sandisk has now become the market’s most compelling AI memory play, with its revenues coming in at $5.95 billion in the fiscal third quarter of 2026, a 97% sequential rise and well above its own guidance, according to investor.sandisk.com. Looking ahead, Sandisk expects revenues of $7.75 billion to $8.25 billion for the fiscal fourth quarter of 2026. The guidance indicates another quarter of robust revenue growth as the company deepens its presence among high-value customers in the rapidly growing data center market.
Additionally, Sandisk has strengthened customer retention, improved revenue visibility, and enhanced long-term cash flow predictability through its strategic multi-year New Business Model agreements. Meanwhile, profitability is improving, with the company projecting non-GAAP earnings per share (EPS) of $30-$33 in the fiscal fourth quarter, up from $23.41 reported in the fiscal third quarter, indicating sustained sequential earnings momentum.
Therefore, Sandisk is emerging as a potential long-term winner in the AI memory market, banking on robust AI-driven memory demand, improving profitability, and long-term customer agreements. CEO of Sandisk, David Goeckeler, also expressed confidence in the company’s outlook, stating, “With a zero-debt balance sheet, strong cash generation, and a recently authorized share repurchase program, we are positioned to deliver substantial long-term value creation for our shareholders.”
Consequently, the company’s expected earnings growth rate for the current year is an exceptional 2,111%. The Zacks Consensus Estimate of $66.11 for SNDK’s EPS is up 1059.8% year over year.
Image Source: Zacks Investment Research
Brokers also remain bullish on Sandisk’s growth, estimating an average short-term price target for SNDK stock at $2,380.47, indicating a 49.8% increase from the last closing price of $1,589.40. The highest target is $3,250, suggesting a potential upside of 104.5%.
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Image: Shutterstock
Missed NVIDIA? This AI Memory Stock Could Be the Next Big Winner
Key Takeaways
The rise of artificial intelligence (AI) has transformed NVIDIA Corporation (NVDA - Free Report) into the world’s most valuable company, with its stock hitting record highs. Incessant demand for its cutting-edge chips and CUDA software platform has fueled exceptional growth, with the company consistently beating quarterly expectations.
Despite these strong fundamentals, NVIDIA’s gains have been muted this year, up only 10.9%, reflecting already high investor expectations. Given the company’s massive scale, concerns have emerged about its ability to sustain rapid growth. At the same time, the possibility of a slowdown in AI spending by hyperscale cloud providers, growing competition from peers, and tighter U.S. export restrictions on advanced chips to China could weigh on NVIDIA’s future profit margins, even as AI chip demand remains strong.
Some investors may now feel that they have missed NVIDIA’s remarkable rally. However, they should search for opportunities elsewhere in the AI ecosystem. They may currently consider memory chipmaker Sandisk Corporation (SNDK - Free Report) , whose shares have soared 573.7% year to date and appear well positioned for further gains. Let’s explore why Sandisk could be the next big winner –
Sandisk: A Potential AI Memory Leader Poised for Breakout Growth
Surging demand for Sandisk’s AI-related memory solutions and a tight supply environment fueled strong pricing power and bolstered the company’s growth prospects.
Sandisk has now become the market’s most compelling AI memory play, with its revenues coming in at $5.95 billion in the fiscal third quarter of 2026, a 97% sequential rise and well above its own guidance, according to investor.sandisk.com. Looking ahead, Sandisk expects revenues of $7.75 billion to $8.25 billion for the fiscal fourth quarter of 2026. The guidance indicates another quarter of robust revenue growth as the company deepens its presence among high-value customers in the rapidly growing data center market.
Additionally, Sandisk has strengthened customer retention, improved revenue visibility, and enhanced long-term cash flow predictability through its strategic multi-year New Business Model agreements. Meanwhile, profitability is improving, with the company projecting non-GAAP earnings per share (EPS) of $30-$33 in the fiscal fourth quarter, up from $23.41 reported in the fiscal third quarter, indicating sustained sequential earnings momentum.
Therefore, Sandisk is emerging as a potential long-term winner in the AI memory market, banking on robust AI-driven memory demand, improving profitability, and long-term customer agreements. CEO of Sandisk, David Goeckeler, also expressed confidence in the company’s outlook, stating, “With a zero-debt balance sheet, strong cash generation, and a recently authorized share repurchase program, we are positioned to deliver substantial long-term value creation for our shareholders.”
Consequently, the company’s expected earnings growth rate for the current year is an exceptional 2,111%. The Zacks Consensus Estimate of $66.11 for SNDK’s EPS is up 1059.8% year over year.
Image Source: Zacks Investment Research
Brokers also remain bullish on Sandisk’s growth, estimating an average short-term price target for SNDK stock at $2,380.47, indicating a 49.8% increase from the last closing price of $1,589.40. The highest target is $3,250, suggesting a potential upside of 104.5%.
Image Source: Zacks Investment Research
Sandisk currently has a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks Rank #1 stocks here.