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Sandisk Corporation SNDK stock climbed over 10% in Tuesday’s session as bullish analyst commentary and a broader rally in technology stocks fueled buying in the memory-chip maker.
Nasdaq futures rose 1.30%, while S&P 500 futures gained 0.39%, supporting risk appetite across the technology sector.
Morgan Stanley Sees Memory Cycle Strengthening
Morgan Stanley analyst Joseph Moore said the recent pullback in U.S. memory stocks presents an attractive buying opportunity. He cited persistent data center memory shortages and forecast memory prices will rise at least 25% from the second quarter to the third quarter of 2026.
Moore said the current memory cycle remains driven almost entirely by data center demand, while weaker consumer electronics, PC and smartphone markets have weighed on investor sentiment. However, the firm’s channel checks found no evidence that supply constraints in the data center market are easing.
The analyst also said memory shortages could become even more severe in 2027 and 2028, adding that Morgan Stanley is buying the sector on weakness.
The positive analyst commentary comes as investors remain optimistic about the next phase of the memory cycle. A stronger broader market is also boosting higher-beta technology stocks, helping SanDisk outperform the wider market before the opening bell.
AI Memory Pricing Drives Micron Sentiment
Additional support came from comments by SK Hynix Inc. SKHY Chairman Chey Tae-won, who said AI-driven memory prices remain “abnormally high” and argued the industry should expand supply rather than maximize profits from current shortages.
His reasoning is simple—if AI-driven price increases begin to weigh on PC and smartphone makers, or encourage new competitors to enter the market, today’s supercycle could prove shorter than investors expect.
He flagged expectations for overall memory demand to rise more than 50% to 60% next year, while AI-specific demand could climb 60% to 100%.
Sandisk Earnings And Analyst Outlook
Sandisk is scheduled to report quarterly results on Aug. 5.
Wall Street expects earnings of $33.38 per share, compared with 29 cents per share a year earlier. Revenue is projected to reach $8.24 billion, up from $1.90 billion in the prior-year period.
The stock trades at about 47.5 times earnings, reflecting a premium valuation.
According to analyst consensus, Sandisk carries a Buy rating with an average price forecast of $1,842.80. Recent analyst actions include:
- Bank of America Securities: Buy; raised price forecast to $2,500 on July 1.
- Bernstein: Outperform; raised price forecast to $3,000 on June 30.
- Citigroup: Buy; raised price forecast to $2,500 on June 25.
ETFs With Significant Sandisk Exposure
Sandisk is a major holding in several exchange-traded funds, including:
- Roundhill Memory ETF DRAM: 5.42%
- Invesco S&P 500 Pure Growth ETF RPG: 7.29%
- Invesco Dorsey Wright Technology Momentum ETF PTF: 6.80%
Large inflows or outflows in these funds can result in additional buying or selling of Sandisk shares.
Price Action
SNDK Stock Price Activity: SanDisk shares were up 10.14% at $1,532.05 at the time of publication on Tuesday, according to Benzinga Pro data.
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This article Sandisk Stock Surges After Morgan Stanley Predicts 25% Memory Price Spike originally appeared on Benzinga.com.
