Citigroup raised its 12-month price target on SanDisk (SNDK) stock to $2,500 from $2,025 per share on Thursday, following Micron's better-than-expected F3Q26 results and citing structurally favorable NAND industry conditions. SNDK stock soared 21.5% on Thursday, its best single-day performance since January. Citi analyst Asiya Merchant stated that SanDisk should continue to benefit from tight NAND supply and increasing data center mix, which serves as a competitive moat and supports longer-term margin expansion. The upgrade reflects broader optimism in the memory chip sector, with 18 out of 22 analysts rating SNDK 'Buy,' three 'Hold,' and one 'Sell,' according to Koyfin data.
Micron Reports Strong F3Q26 Results
Micron's stock ended Thursday 16% higher, and the Roundhill Memory ETF (DRAM) was up 10%. Micron reported revenue of $41.46 billion for the quarter, up 346% year-over-year, beating analysts' expectations of $35.3 billion. Earnings came in at $25.11 per share, surpassing the consensus estimate of $20.28 per share. The memory chipmaker's gross margin surged to 84.9% in the third quarter from 39% a year earlier, placing it among the highest-margin companies in the technology sector. The company's revenue and profit outlook for the current quarter, which ends in August, also exceeded expectations.
Citi analyst Asiya Merchant noted in a Thursday client note that Micron's results were driven by tight NAND industry conditions and favorable product mix. Merchant added that SanDisk should continue to benefit from this structurally favorable environment, with increasing data center mix further supporting margins over the longer term.
SanDisk Q3 Revenue Surges 251%, Q4 Analyst Expectations Outlined
SanDisk reported revenue of $5.95 billion for the quarter ending March, up 251% from the previous year and ahead of the $4.73 billion expected by analysts polled by Fiscal.ai. Earnings for the quarter came in at $23.41 per share, far exceeding the $14.66 consensus estimate.
Analysts expect SanDisk revenue to reach $8.28 billion for the quarter ending June 2026, with earnings of $33.72 per share, according to Fiscal.ai estimates. Citigroup's revised price target of $2,500 implies a 23.5% upside from its previous target and 7% higher than Thursday's closing price. The firm maintains a buy recommendation on the stock.
Retail Investors Express Bullish Sentiment on SNDK Stock
Retail sentiment on Stocktwits was 'bullish' with 'extremely high' message volumes on Thursday. One user wrote that SNDK is pricing a near-perfect NAND cycle with strong AI demand, high prices, and peak margins, but cautioned that NAND remains cyclical and a reset could occur if supply normalizes or pricing softens. SNDK stock has soared 884% year-to-date.
FAQ
What price target did Citigroup set for SanDisk stock?
Citigroup raised its 12-month price target on SanDisk (SNDK) stock to $2,500 from $2,025 per share on Thursday, citing favorable NAND industry conditions and Micron's strong quarterly results.
How much did SanDisk revenue grow in the quarter ending March?
SanDisk reported revenue of $5.95 billion for the quarter ending March, up 251% from the previous year, beating analysts' expectations of $4.73 billion. Earnings came in at $23.41 per share, far ahead of the $14.66 consensus estimate.
