TLDR
- SanDisk stock has gained 500% year-to-date and jumped 11.9% to $1,740 after being added to the S&P 100, effective September 21.
- The company posted quarterly revenue of $8.97 billion, up 372%, with gross margins of 84.6%.
- SanDisk has secured $93.9 billion in long-term customer agreements with eight data-center clients, including three US hyperscalers.
- A new high-bandwidth flash (HBF) chip is on track for launch in 2027, with mass production in 2028, adding potential AI upside not yet in official forecasts.
- Lynx Research has set a price target of $2,450 for SNDK, citing easing volatility and more deliberate institutional buying.
SanDisk stock hit $1,740 on Friday, a gain of 11.9% in a single session, after the company was confirmed for promotion to the S&P 100 ahead of September 21. That move made SNDK the top performer in the S&P 500 for the day and pushed its market cap to roughly $273 billion. The stock is now up around 500% so far in 2026.
The numbers driving that move are hard to ignore. SanDisk’s most recent quarter showed revenue of $8.97 billion, up 372% year over year. Gross margin came in at 84.6%, and data-center revenue more than doubled sequentially to $2.98 billion. Management also projected up to $10.8 billion in revenue for the coming quarter.
The company lifted its remaining share-repurchase authorization to $15.5 billion, which represents about 5.7% of its current market cap. That kind of buyback capacity tends to get attention from institutional investors.
Long-Term Agreements Reduce Cyclical Risk
One of the more interesting structural shifts at SanDisk is its move away from spot-market NAND sales. The company has signed multi-year supply deals with eight data-center customers, including three US hyperscalers, with a minimum total contract value of $93.9 billion.
These agreements include pricing floors and ceilings. The CFO said floor pricing supports gross margins of around 80%. The contracts are expected to cover 50% of bit shipments in fiscal 2027 and 67% in fiscal 2028.
SanDisk’s 10-K describes these new business models as the intended future of the company, offering more predictable revenue and production planning. They don’t eliminate all risk, but they do give the company a lot more visibility than a traditional NAND supplier.
SanDisk also maintains a long-standing joint venture with Kioxia at the Yokkaichi plant in Japan, recently extended through December 2034. Together, the two companies account for 33% of global wafer production. The partnership lets both sides share manufacturing costs and jointly develop technology.
HBF Could Add AI Upside
SanDisk and SK Hynix jointly developed a high-bandwidth flash standard aimed at AI inference workloads. HBF is designed to offer eight to 16 times more memory capacity at a given bandwidth compared to existing solutions.
SanDisk has completed the design of its first HBF chip and is on track for a 2027 launch, with mass production targeted for 2028. Support has come from Alphabet, Meta Platforms and Tenstorrent. Nvidia adoption has not yet been confirmed.
Importantly, HBF is not included in SanDisk’s current financial projections, which already target mid-to-high-teens revenue CAGR through fiscal 2030.
Lynx Research has a $2,450 price target on SNDK. The firm noted that the sharp volatility seen in May and June has settled and that institutional buying has become more measured.
The GuruFocus GF Score for SanDisk currently sits at 51 out of 100, with strong growth and financial strength offset by weaker value and momentum readings.
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