SanDisk (NASDAQ: SNDK) has already witnessed an exceptional 20x rally in less than a year – but a senior Cantor Fitzgerald analyst says its “massive and unprecedented” earnings beat warrant buying at current levels.
The flash memory storage specialist reported record revenue of $3.03 billion and earnings of $6.20 per share for its fiscal second quarter, released late on Thursday.
Profit figures were well above market expectations, with analysts having forecast earnings of $3.62 per share.
Christopher Muse said the results indicate the company is operating in what he described as a “perfect storm” of strong demand and constrained supply.
Following the post-earnings rally, SanDisk shares are now trading at more than double their level at the start of 2026.
Why SanDisk stock is poised to rip higher in 2026
Muse expects average selling prices (ASPs) for NAND flash to soar by another 50% quarter-over-quarter, signalling SanDisk is seeing a kind of pricing power that’s rare for the memory sector.
This pricing power, he believes, will push the Nasdaq-listed firm’s gross margin to a “staggering” 67% – nearly double the 34.8% it reported just a few months ago.
According to the Cantor Fitzgerald analyst, SNDK stock could rally much further in 2026 because the company’s enterprise SSDs have become “critical enablers” for hyperscale AI infrastructure.
Note that the unprecedented AI demand helped the company guide for $13 a share of earnings for its current financial quarter – nearly double the $7.0 Muse had anticipated.
SNDK shares remain relatively inexpensive to own
In his research note, Christopher Muse argued the market is still underestimating the “structural shift” in SanDisk’s profitability following its spinoff from Western Digital last year.
“We are witnessing a structural reset. The unprecedented shortages of NAND memory are giving SanDisk significant power to raise prices, creating massive upside in the short term.”
Moreover, SNDK is successfully moving customers away from quarterly price negotiations toward multi-year agreements, which he believes will reduce the historical cyclicality of the stock, helping justify a higher multiple.
Note that SanDisk shares are not egregiously overvalued in 2026.
At a forward price-to-earnings (P/E) multiple of about “34” only, they’re actually cheaper to own than Nvidia at “43”.
SanDisk could hit $800 over the next 12 months
On Friday, the investment firm announced aggressive upward revisions to its long-term estimates.
Its senior expert Christopher Muse now expects SanDisk to earn $77 on a per-share basis this year, and lift it further to a remarkable $91 a share in 2027.
That’s nearly four times his expectation for next year ahead of the Q4 release.
All in all, the Cantor Fitzgerald analyst believes SNDK shares will hit “$800” by the end of 2026, indicating potential upside of more than 30% from here.
That said, the California-based company doesn’t currently pay a healthy dividend to attract income-focused investors.
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