SanDisk Stock Soars on AI Demand Boost, Q3 Guidance Exceeds Expectations

The US stock storage sector has recently performed strongly, with SanDisk’s stock price significantly rising due to AI-driven storage demand and institutional upward revisions of target prices.

Recent Events

On February 12, 2026, the US stock storage sector surged, with SanDisk’s stock price jumping 10.65%, driven by AI-powered storage demand and Morgan Stanley’s upward target price revision. On February 13, SanDisk issued a strong third-quarter earnings guidance, expecting revenue of $4.4-4.8 billion and adjusted EPS of $12-14, far exceeding market expectations. On the same day, despite a decline in the broader US stock market, storage concept stocks continued to rise, with SanDisk closing up 5.16%.

Recent Stock Performance

In the past 7 days (February 9-13), SanDisk’s stock price showed significant volatility: a 10.65% increase on February 11, a further 5.16% rise on February 12, and a 5.20% pullback on February 13, with a total fluctuation of -0.15% over the period. Trading volume remained high, reaching $14.9 billion on February 12, with a turnover rate of 15.80%, reflecting active market trading. Since the beginning of the year, the stock has gained 151.53%, highlighting the sector’s hotness.

Earnings Analysis

On February 13, SanDisk updated its third-quarter earnings guidance, expecting a median revenue of $4.6 billion and a median adjusted EPS of $13, mainly due to increased enterprise SSD demand driven by AI inference stages, leading to NAND supply tightness. The company emphasized extending its joint venture agreement with Kioxia until 2034 to ensure supply chain stability and maintained its existing capital expenditure plans, prioritizing long-term supply agreements. Institutions forecast its Q2 2026 EPS to grow 197.21 year-over-year, confirming an industry upcycle.

Institutional Views

As of February 2026, 23 institutions cover SanDisk, with 74% rating it as a buy or overweight, and an average target price of $735.26, offering upside potential from current levels. Morgan Stanley, RBC Capital, and other institutions recently raised their target prices, citing strong earnings and sustainable AI-driven storage demand. They believe the storage sector’s upcycle could continue until 2027 but advise monitoring supply and demand changes that may impact stock volatility.

The above content is based on publicly available information and does not constitute investment advice.