SanDisk Stock (SNDK) Hits All-Time High on Wednesday — What’s Driving the Stock?

SanDisk SNDK +4.65% ▲ hit a record high on Wednesday, closing at $753.69 after rising 4.65% during the session, as strong demand for AI-driven storage continued to lift the stock. However, the stock fell about 3.3% in after-hours trading, following weakness in chip stocks after Micron’s MU <+0.01% ▲ earnings, which reported high spending plans

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What’s Driving the Rally

A few clear factors pushed the stock higher.

**1. Long-Term Deals Bring Stability: **SanDisk is signing more multi-year deals with large cloud customers. This matters because memory stocks are usually volatile. These deals help lock in demand and make future revenue more predictable.

In its recent updates, management said it has secured long-term agreements with major hyperscale cloud providers, including Amazon AMZN -2.48% ▼ AWS and Microsoft MSFT -1.91% ▼ Azure. These deals extend visibility into 2027 and 2028, giving investors more confidence in the company’s growth outlook.

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**2. Strong Analyst Backing Supports the Rally: **Recent analyst updates have added to the bullish sentiment around the stock. Recently, KGI Securities initiated coverage with an Outperform rating and set a price target near $1,000, implying 33% upside from current levels.

Other firms have also turned more positive, pointing to SanDisk’s strong position in AI storage and its outperformance versus peers.

**3. AI Storage Demand Keeps Growing: **SanDisk’s high-capacity SSD solutions, including its 128TB drives designed for AI workloads, are seeing increasing adoption. These products help data centers store more data using less space and power, which is key as AI workloads grow. This is helping drive both sales and pricing.

Is SanDisk Stock a Good Buy?

On Wall Street, SanDisk has a Strong Buy rating, based on 12 Buys, three Holds, and zero Sells. The average SNDK price target of $688.33 indicates an 8.67% downside potential over the next 12 months.

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