Sandisk stock surged over 25% following Q2 2026 earnings

SanDisk (SNDK) stock surged over 25% following Q2 2026 earnings that drastically beat estimates, driven by intense AI-related demand for NAND flash memory. Analysts, including those at Bernstein and Susquehanna, raised their price targets to $1,000, citing explosive revenue growth, a 53% sequential revenue guidance jump for Q3, and a structural supply-demand imbalance. Why the $1,000 Price Target? Massive Earnings Beat & Guidance: SanDisk reported Q2 revenue of $3.03 billion against a $2.64 billion estimate, and non-GAAP EPS of $6.20 vs. the $3.49 consensus. Q3 revenue guidance of $4.4- $4.8 billion indicates "unprecedented" acceleration.AI Demand & Supply Shortage: Surging demand for data center storage (NAND) to support AI infrastructure has created a major shortage, allowing for higher pricing.Structural Industry Shift: Analysts believe the NAND cycle is experiencing a severe supply-demand imbalance with "no clear end in sight," favoring long-term contracts and higher margins.Bullish Valuation Model: Bernstein analyst Mark Newman raised the target to $1,000 based on an 11 times multiple of projected 2027 earnings of $90.96 per share.Recovery Velocity: Analysts described the turnaround from 2022-2023 "nuclear winter" as incredibly fast, with Susquehanna's Mehdi Hosseini calling the outlook a "defining moment". Other firms, including Barclays to $750, Mizuho to $710 and Bank of America to $850, also significantly increased their price targets.