Veteran analyst has blunt message on Sandisk stock after massive rally

Shares of Sandisk have been on a massive run this year as investors continue piling into artificial intelligence-related memory and storage names.

Sandisk stock is up 591% year to date and closed at $1,641 on May 28, according to Yahoo Finance data.

The rally accelerated this week after Micron Technology (MU) surged 19% on May 26 following a major price target increase from UBS, fueling another wave of momentum across the broader memory sector.

UBS analyst Timothy Arcuri raised his price target on Micron to $1,625 from $535. Meanwhile, Barclays analyst Thomas O’Malley upgraded Sandisk (SNDK) to overweight from equal weight and lifted his price target to $2,300 from $1,200, according to The Fly.

Micron, Western Digital (WDC), Sandisk, and Seagate Technology (STX) all rallied sharply this year as Wall Street enthusiasm around AI infrastructure spending continues to drive demand for storage and memory products tied to hyperscalers, cloud providers, and data centers.

Related: Analyst who predicted Micron rally has new message

Analysts have also turned increasingly bullish on the group.

Barclays analyst O’Malley said memory and storage remain “the most attractive vertical below Accelerators” and added that supply-demand imbalances could continue supporting pricing through 2027.

Veteran trader says Sandisk still has upside left

Stephen Guilfoyle, founder and president of family-run trading firm Sarge986 LLC and a veteran trader with more than 30 years of market experience, said he remains bullish on Sandisk shares.

Guilfoyle referred to recent bullish analyst calls from UBS and Barclays on the memory and storage sector.

Sandisk stock is up 591% year to date.

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“What do Arcuri and O’Malley have in common? Why have they moved markets as they have? Simple. These two guys are among the best of the best at what they do,” Guilfoyle wrote in a TheStreet Pro note.

Guilfoyle highlighted the analysts’ historical returns and success rates, arguing that investors are paying close attention to their calls because of their long track records in the semiconductor sector.

“I agree with O’Malley that, for investors, SNDK and the rest of this basket are likely to have considerable upside left in their current trends,” he wrote.

Related: Cathie Wood buys $32 million of popular semiconductor stock

From a technical perspective, Guilfoyle said Sandisk’s chart still looks constructive despite the stock’s explosive run higher.

“Readers will see that SNDK has, instead of going parabolic, been relentless in trending higher over a short time,” he wrote. “Relative strength is quite robust, but not yet technically overbought. The daily MACD, which had not been so bullishly postured since mid-May, now looks to be in much better shape.”

Guilfoyle said he is long Micron, Western Digital, SanDisk, and Seagate, though SanDisk has become the largest position in his portfolio following the recent rally.

He added that Sandisk’s earlier bull flag pattern “worked like a charm,” though traders should still watch whether the stock can break above recent resistance levels.

Guilfoyle currently has a $2,100 target price on Sandisk shares. He also listed $1,600 as a key panic level and said the stock’s 21-day exponential moving average near $1,338 could represent an area for investors to add to positions.

Sandisk fundamentals remain strong

Sandisk reported fiscal third-quarter 2026 results on April 30 that easily topped Wall Street expectations.

Revenue came in at $5.95 billion, up 97% sequentially and 251% from a year earlier. The company reported GAAP net income of $3.62 billion, or $23.03 per diluted share, while non-GAAP diluted earnings reached $23.41 per share.

The company’s sales growth beat analyst expectations by more than $1.2 billion, while adjusted earnings per share topped estimates by nearly $9.

Sandisk said stronger pricing and a shift toward higher value customers helped drive the results, especially in the data center business. Datacenter revenue jumped 233% sequentially and 645% year over year to $1.47 billion.

The company also issued much stronger-than-expected guidance for the current quarter. Sandisk forecast fourth quarter revenue between $7.75 billion and $8.25 billion, well above Wall Street estimates of about $6.65 billion.

“This quarter marks a fundamental inflection point for Sandisk — where our technology leadership is enabling a deliberate shift in our mix toward the highest value end markets, led by Datacenter,” Chief Executive David Goeckeler said.

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