By SanDisk (NASDAQ: SNDK) was the “top-performing” S&P 500 stock last year, as index inclusion drove institutional capital to the flash memory firm – but Citi sees it pushing higher still in 2026.
In her latest research note, senior analyst Asiya Merchant maintained a “buy” rating on SNDK shares, with a $280 price target, indicating potential upside of another 18% on their previous close.
Her bullish call on SanDisk stock is particularly significant given it’s already trading at nearly 9x its price in early April.
AI tailwinds to push SanDisk stock higher in 2026
SanDisk specializes in enterprise solid state drives (eSSDs) that are widely used in data centers for high-performance storage, faster data access, and improved energy efficiency.
And since artificial intelligence (AI) spending is broadly expected to remain strong in 2026, Asiya Merchant believes SNDK shares will claw their way back to record levels over the next 12 months.
“The industry should remain in tight production supply, with eSSDs benefitting from super strong hyperscale demand on generative AI training/inferencing services,” she told clients.
Note that SanDisk’s longer-term relative strength index (100-day) sits at 60 currently – reinforcing that its upward momentum is unlikely to lose steam anytime soon.
SNDK shares are trading at attractive valuation
According to the Citi analyst, SanDisk is strongly positioned to more than 8x its adjusted earnings over the next two years and hit a whopping $25.74 a share by its fiscal 2027.
In her research note, she dubbed the firm’s new Bics8 technology a potential barrier to competitive threats – cementing her confidence in its long-term growth trajectory.
From a valuation perspective, SNDK is currently trading at a forward price-to-earnings (P/E) ratio of about 20, which is relatively attractive for a company riding AI tailwinds.
Moreover, derivatives data stepping into 2026 is skewed to the upside as well.
Options traders are currently pricing in a more than 40% rally in the first half of 2026, which means SanDisk shares could be trading at north of $375 within the next six months.
What’s the consensus rating on SanDisk Corp
Investors could also take heart in the fact that Asiya Merchant isn’t the only analyst recommending sticking with SNDK stock at current levels.
In fact, the consensus rating on SanDisk shares also currently sits at “overweight” with price targets going as high as $322, indicating potential upside of another 22% from here.
Note that SanDisk is scheduled to report its fiscal Q2 earnings on January 29th. Consensus is for it to post $2.6 billion in revenue on a staggering 160% year-on-year earnings growth to $3.2 a share.
The upcoming earnings release could, therefore, prove a near-term catalyst that pushes this AI stock higher this year (2026).
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