SanDisk (SNDK) Stock Drops on Google News — Bernstein Says Buy the Dip

TLDR

• Bernstein has set a Street-high price target of $1,000 on SNDK, calling the recent selloff an overreaction to Alphabet’s TurboQuant algorithm announcement.
• SanDisk reported Q2 FY2026 revenue of $3.03 billion, up 61% year-over-year, beating its own guidance.
• The company launched 256TB enterprise SSDs aimed at AI data center workloads.
• Q3 guidance calls for revenue of $4.4–$4.8 billion, with non-GAAP gross margin projected at 65–67%.
• Of 20 Wall Street analysts covering SNDK, 14 rate it a Strong Buy, with a mean price target of $752.24.

SanDisk stock has pulled back in recent days after Alphabet unveiled its TurboQuant algorithm, which some investors fear could reduce memory demand by solving the memory bottleneck problem. The stock traded at around $692.73 at the time of writing, roughly 11% below the average analyst target of $770.32.

Sandisk Corporation, SNDK

Bernstein pushed back on that narrative this week, arguing the market is overreacting. The firm says HDD demand will likely be unaffected by TurboQuant, and any impact on NAND memory demand will be modest. As a result, Bernstein sees the dip as a buying opportunity and placed a Street-high price target of $1,000 on SNDK — implying upside of about 43% from current levels.

Citi also holds a Buy rating with a $875 target. Of the 20 analysts covering the stock, 14 rate it a Strong Buy and one a Moderate Buy. Just five have a Hold. The mean target sits at $752.24.

SNDK has returned roughly 1,371% over the past 12 months, driven by tight supply and strong demand tied to AI workloads. The stock did pull back in March before the latest TurboQuant-related drop, which Bernstein flagged as the initial buying opportunity.

The valuation sits at 15.6 times forward earnings — a level that suggests the market is already pricing in some cooling of memory demand. Analysts expecting earnings growth of 2,000% in fiscal 2026 and 133% in fiscal 2027 see that multiple as attractive.

Free cash flow came in at $1.45 billion over the last 12 months, and the company closed Q2 with $1.54 billion in cash and just $603 million in debt after paying down $750 million.

Record Q2 Sets the Stage

SanDisk posted Q2 FY2026 results on January 29. Revenue hit $3.03 billion, a 31% sequential jump and 61% year-over-year gain. Edge revenue led the way at $1.68 billion, followed by consumer at $907 million and data center at $440 million. Data center revenue alone grew 64% sequentially.

Non-GAAP gross margin jumped to 51.1% from 29.9% the prior quarter. Non-GAAP operating margin rose to 37.5% from 10.6%. The company also launched 256TB enterprise SSDs this quarter, targeted directly at AI data center customers.

Simply Wall St’s model puts the stock roughly 65% below estimated fair value at current levels. The stock’s 30-day return going into the results was around 11.9%.

Q3 Guidance Points Higher

For Q3, management guided for revenue between $4.4 billion and $4.8 billion. Non-GAAP gross margin is expected to land between 65% and 67%, up from 51.1% in Q2. Non-GAAP EPS guidance came in at $12 to $14.

Management noted the market is more undersupplied now than it was in Q2, which supports the strong revenue outlook. SanDisk is due to report Q3 earnings on April 30.

One thing to watch: insider selling and some volatility in the price have been flagged as minor risks by analysts. The stock’s target range runs wide, from $600 on the low end to Bernstein’s $1,000 at the top.

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