One of the market’s hottest stocks of 2026 has a new bull piling onto the trade.
Longtime tech analyst Amit Daryanani initiated coverage on Sandisk (SNDK) with an Outperform rating and $1,200 price target in a new note on Tuesday. A coverage initiation reflects the first time a Wall Street analyst is offering research coverage on a company for the firm’s clients.
The price target puts him among the highest on Wall Street for Sandisk.
At $1,200, Daryanani estimates at least 27% upside in Sandisk from current price levels.
“We believe SNDK is levered to one of the most attractive areas of the AI infrastructure stack – data storage, where demand is accelerating and supply remains constrained at minimum through 2028 if not beyond,” Daryanani wrote. “While concerns around peak NAND pricing and cyclicality persist, we think the current cycle is structurally tighter and more durable, underpinned by AI-driven demand and sustained supply discipline.”
Not all tech stocks are experiencing investor fatigue.
Sandisk is a once-forgotten memory chip player founded in 1988 that sells data storage devices and solutions based on NAND flash technology. The company’s stock has skyrocketed 246% in 2026. Share prices have increased by more than 2,700% over the past year.
Read more about Sandisk’s stock moves and today’s market action.
The AI capital expenditures boom sweeping the US has funneled down to Sandisk and rival Micron (MU). As hyperscalers build AI systems, demand for memory chips has surged. These chips store and move data for AI models, which require large volumes of information to perform at high levels.
Memory has become one of the tightest parts of the AI supply chain, experts say.
Yahoo Finance data shows Wall Street is looking for outsized financial performance from Sandisk this year to support its lofty stock valuation.
Analysts estimate Sandisk will report fiscal 2027 earnings growth of about 133% compared to 16% growth for the S&P 500 (^GSPC).
Earnings estimates for Sandisk for this fiscal year and next have increased more than five times in the past 90 days, according to Yahoo Finance data.
Daryanani added, “Despite strong stock performance, we see further upside driven by earnings revisions, mix shift toward enterprise SSD, and multiple re-rating.”
Brian Sozzi is Yahoo Finance’s Executive Editor and a member of Yahoo Finance’s editorial leadership team. Follow Sozzi on X @BrianSozzi, Instagram, and LinkedIn. Tips on stories? Email brian.sozzi@yahoofinance.com.