Sandisk stock rises on data center demand

PARAGRAPH 1 --- Sandisk (NASDAQ: SNDK) stock has surged in 2026, up 429% and 570% year-to-date, driven by robust demand for its memory products in data centers, particularly for AI infrastructure. Key catalysts include a $1,350 price target from Melius Research, a 51% sequential revenue growth rate, and a $15.5 billion stock buyback program. Analysts predict Sandisk will reclaim its all-time high by year-end.

PARAGRAPH 2 --- The memory chip industry is significantly impacted, with Sandisk and Micron benefiting from strong demand and supply shortages. Hyperscaler capital expenditure, expected to reach $750 billion in 2026 and $7.6 trillion by 2031, fuels this growth. Valuations are a concern, but analysts argue that Sandisk's stock is still cheap given its growth prospects.

PARAGRAPH 3 --- Investors should watch for Sandisk's Q1 2027 earnings, expected on February 15, to gauge the sustainability of its growth. Additionally, keep an eye on the progress of its enterprise SSD and flash memory product expansion, which is crucial for meeting AI infrastructure demand. Lastly, monitor any updates on hyperscaler spending commitments, as they directly impact Sandisk's revenue growth.