A recent analysis by Bernstein suggests a substantial increase in the valuation of SanDisk Corporation, with an analyst raising the price target to $1,250. This revised outlook indicates a potential 47% gain from the current stock levels, primarily driven by a robust and unexpectedly strong trend in NAND memory pricing. The firm’s continued 'Outperform' rating underscores confidence in SanDisk's market position and future financial performance, dispelling previous concerns and highlighting a positive trajectory in the memory sector.

Bernstein's bullish stance on SanDisk is largely attributed to the sustained strength in NAND pricing, which has consistently surpassed market expectations. Analyst Mark Newman reiterated an 'Outperform' rating, asserting that earlier worries about certain market dynamics, specifically 'TurboQuant,' were overstated. The firm's monthly memory tracker for March revealed an acceleration in pricing momentum, with NAND products leading the charge and demonstrating an upward trend.

In light of these favorable market conditions, Bernstein has adjusted its financial projections for SanDisk. The firm raised its non-GAAP earnings per share (EPS) estimates for fiscal year 2027 to $144 in a baseline scenario and $224 in a more optimistic 'bull' case. The $1,250 price target is based on approximately 8.7 times the base-case EPS. Furthermore, Bernstein's broader valuation methodology applies an 11x multiple to the projected average earnings of $114 per share spanning fiscal years 2026 to 2029. In a highly optimistic scenario, applying a 13x multiple to the bull-case earnings could see the stock potentially reach $3,000.

Newman further emphasized that the market currently undervalues SanDisk's earning capabilities and the sustainability of the ongoing cycle. He noted that the significant inflection in NAND prices began only six to seven months prior, indicating that the industry remains structurally undersupplied. For the fiscal third quarter concluding in March, the analyst anticipates SanDisk to report an adjusted EPS of $14.18, exceeding the consensus estimate of $13.99 and the company's own guidance range of $12–$14. Looking ahead, Newman projects fourth-quarter earnings of $25.30 per share, significantly surpassing the Street's estimate of $18.78, a forecast underpinned by an expected 40% sequential increase in average selling prices. SanDisk is scheduled to release its fiscal third-quarter results on April 30.

The positive analyst sentiment has already impacted SanDisk's stock performance. On Friday, the stock continued its upward climb, rising over 1% in pre-market trading following the increased price target. The stock achieved an all-time high of $855 on April 9. This surge reflects a broader trend, with SanDisk shares having rallied approximately 2,200% over the past year. This impressive growth is fueled by rising NAND flash prices and a burgeoning demand from artificial intelligence (AI) data centers, signifying a strong market for memory solutions.

The latest analysis from Bernstein highlights a compelling investment case for SanDisk, driven by a robust NAND market and increasing demand. The revised price targets and elevated EPS estimates reflect a deep belief in the company's sustained growth potential, particularly given the ongoing demand from AI data centers. The market's current response suggests that investors are increasingly recognizing SanDisk's undervalued earning power within a structurally undersupplied industry.