Why Sandisk Stock Popped Today

Sandisk (NASDAQ: SNDK) banal jumped 6.3% done 11:55 a.m. ET Thursday aft Bernstein SocGen Group expert Mark C. Newman raised his terms people connected the semiconductor banal by 25%, to $1,250 per share, arsenic StreetInsider.com reports today.

Sandisk shares are already up 2,040% implicit the past 52 weeks -- but Bernstein thinks this tally is not done.

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Indeed, to perceive Newman archer it, $1,250 whitethorn beryllium a conservative estimate. In what the expert calls a "blue-sky scenario," it's conceivable Sandisk could emergence arsenic precocious arsenic $3,000 if NAND machine representation spot prices proceed to soar.

Sandisk's upcoming fiscal Q3 2026 net report, owed retired April 30, volition springiness america a amended representation of however apt this is to happen. But for the clip being, Newman observes that NAND prices successful March were already up much than anticipated. Looking up into fiscal 2027, the expert anticipates Sandisk earning $224 per stock -- and perchance adjacent more, arsenic investors proceed to "significantly" underestimate however agelong the existent up-cycle successful semiconductors mightiness last.

Semiconductor cycles tin beryllium volatile, truthful Bernstein's attack is to worth Sandisk connected the mean of its net implicit a three-year period, 2026 to 2029. Base case: the expert thinks Sandisk should mean $114 per stock per twelvemonth implicit this play and applies an 11-times multiple, valuing the banal astatine astir $1,250. But Sandisk may average person to $224, successful which lawsuit it would merit a higher aggregate connected those net for the faster maturation complaint -- that's however Bernstein gets to a imaginable $3,000 valuation.

All this said, Sandisk has been losing wealth the past 3 years, truthful tread carefully. Sandisk mightiness commencement earning a batch adjacent year.

But if NAND prices plummet, it besides mightiness not.

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