Seagate and Sandisk Stocks Popped on Ceasefire News. Should You Buy the Memory Stocks Now?

Memory and storage stocks surged after a two-week ceasefire between the U.S. and Iran was announced this week, easing fears around a potential disruption in the Strait of Hormuz and restoring risk appetite across semiconductor markets. Shares of Seagate Technology Holdings plc (STX) and Sandisk Corporation (SNDK) rallied sharply alongside peers, reversing recent weakness as investors rotated back into high-beta AI infrastructure plays.

Just days earlier, geopolitical tensions had weighed on the sector, triggering a pullback in memory names. The ceasefire announcement, while temporary, has improved near-term supply chain visibility, particularly for critical inputs like energy and industrial gases, allowing investors to refocus on the powerful artificial intelligence (AI)-driven demand cycle.

However, it remains to be seen whether this move marks the start of a sustained upcycle or merely a short-lived relief rally. So, are STX and SNDK worth buying now?

Stock #1: Seagate Technology

Seagate Technology is a leading global provider of data storage solutions, specializing in hard disk drives (HDDs) and mass-capacity storage systems used across enterprise data centers, cloud infrastructure, and consumer devices. The company is legally headquartered in Dublin, and has a market cap of $109.2 billion, reflecting its strong positioning in the AI-driven data storage cycle and growing demand from hyperscale cloud providers.

STX has delivered a massive rally over the past year, with the stock climbing an extraordinary 625.85%. On a year-to-date (YTD) basis, the momentum has remained exceptionally strong, with STX up 83.82%, driven by AI-led demand.

More recently, the stock extended its rally following the U.S.–Iran ceasefire announcement around Apr. 7, which eased geopolitical concerns and triggered a rotation back into semiconductor names. STX rose about 3.4% on Apr. 7, and 5.9% on Apr. 8, fueling an already hit rally. The stock has far outpaced the S&P 500 Index’s ($SPX) 29.45% returns over the past year and 0.38% decline this year.

In terms of valuation, the stock trades at 40.97 times forward earnings, which is higher than the sector median but lower than its own five-year average.

Seagate Technology reported strong fiscal second-quarter 2026 results on Jan. 28, highlighting accelerating momentum from AI-driven storage demand. The company posted revenue of $2.8 billion, up 22% year-over-year (YOY), while non-GAAP EPS rose to $3.11 from $2.03 in the prior-year period, beating expectations and reflecting significant margin expansion and operating leverage.

Moreover, non-GAAP gross margin expanded to 42.2% from 35.5%. Furthermore, management issued an outlook for fiscal Q3 2026, guiding for revenue of $2.9 billion (±$100 million) and non-GAAP EPS of $3.40 (±$0.20).

Analysts tracking STX project the company’s profit to reach $12.11 per share in 2026, up 66.8% from the prior year.

Wall Street’s outlook on the stock is optimistic, with a consensus “Strong Buy” rating overall. Of 25 analysts covering the stock, 19 recommend a “Strong Buy,” one opts for a “Moderate Buy,” and the remaining five suggest a “Hold.”

The stock has already surged past the average analyst price target of $483.96, while the Street-high price target of $700 suggests that STX could rally as much as 39% from here.

Stock #2: Sandisk Corporation

SanDisk Corporation is a leading provider of NAND flash memory and storage solutions, supplying products used across data centers, enterprise systems, and consumer devices such as SSDs and embedded storage. Headquartered in Milpitas, California, the company has emerged as a key beneficiary of the AI-driven memory demand cycle following its separation from Western Digital in 2025. Sandisk has a market cap of $125.7 billion.

Sandisk has been one of the standout performers in the semiconductor space, delivering an extraordinary 52-week return of 2,669.7%, driven by the AI-led surge in NAND demand and pricing recovery. And YTD, the stock has continued its meteoric rise, gaining roughly 262.64%, reflecting strong momentum and investor positioning around memory upcycle dynamics and significantly outperforming $SPX.

Moreover, SNDK saw a sharp leg higher following the U.S.–Iran ceasefire announcement, which alleviated geopolitical risk and triggered a broad semiconductor rally. The stock jumped 9.86% on Apr. 8, closing at around $780.90.

Priced at 20.37 times forward earnings, the stock trades at a discount to the sector median.

SanDisk’s second-quarter fiscal 2026 earnings, released on Jan. 29, outpaced expectations. For the quarter ended Jan. 2, SanDisk reported revenue of just over $3 billion, representing a 61% YOY increase, driven by broad-based demand across data center, edge, and consumer segments and far exceeding consensus forecasts.

Moreover, on a non-GAAP basis, EPS came in at $6.20, far above the year-ago $1.23 and well above analysts’ expectations. Gross margins expanded dramatically to 51.1%, up roughly 18.6 percentage points versus the year-ago quarter, reflecting stronger pricing and a favorable mix toward higher-value SSD products.

Alongside the earnings beat, SanDisk issued very strong guidance for the third quarter of fiscal 2026, projecting revenue of $4.4 billion to $4.8 billion and non-GAAP EPS in the $12.00 to $14.00 range.

Analysts remain optimistic, forecasting EPS of $38.34 for fiscal 2026, a substantial 2,053.93 YOY jump.

Wall Street is bullish overall, with a consensus “Strong Buy” rating for SNDK. Out of the 20 analysts covering the stock, 14 recommend a “Strong Buy,” one advises a “Moderate Buy,” and the remaining five analysts are playing it safe with a “Hold.”

SNDK has already surged past its average analyst price target of $752.24, while the Street-high target of $1,000 suggests that the stock could surge as much as 17.5%.

On the date of publication, Subhasree Kar did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Barchart.com