Key Points
Shares of Sandisk (NASDAQ: SNDK) sank on Monday as chip stocks pulled back. Yet several Wall Street analysts remain undeterred, with price targets for Sandisk’s stock that are well above current levels.
Short-term volatility is extreme
Semiconductor stocks are a bit of a battleground right now.
On one side lie investors who see the potential for artificial intelligence (AI) to drive sales of computer processors and memory chips sharply higher in the coming years, fueled by ravenous demand from data center operators.
On the other, skeptics question the sustainability of the already torrid demand for AI chips and related infrastructure, as well as whether the staggering spending by the tech giants will generate returns that justify the cost.
Perhaps unsurprisingly, given these differing views, Sandisk and other chip stocks can see their share prices swing violently on any given trading day.
Long-term gains could be immense
Rather than staying out of the fray, several Wall Street analysts recently sided squarely on the side of the bulls.
Goldman Sachs analyst James Schneider, for one, boosted his price forecast for Sandisk’s shares from $1,200 to $2,200 and reaffirmed his buy rating. Schneider sees the memory chipmaker’s adjusted earnings for 2026 coming in almost 30% above consensus estimates, fueled by surging orders from large cloud computing providers.
Evercore analyst Amit Daryanani, for another, lifted his price target from $1,400 to $3,100. Daryanani sees Sandisk’s recent profit boom lasting longer than many investors expect, as AI-driven demand for memory continues to outpace supply next year and possibly beyond.
Should you buy stock in Sandisk right now?
Before you buy stock in Sandisk, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Sandisk wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004… if you invested $1,000 at the time of our recommendation, you’d have $395,679!* Or when Nvidia made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation, you’d have $1,294,805!*
Now, it’s worth noting Stock Advisor’s total average return is 929% — a market-crushing outperformance compared to 211% for the S&P 500. Don’t miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
Joe Tenebruso has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Evercore and Goldman Sachs Group. The Motley Fool has a disclosure policy.
