A price target of $1,704.60 suggests significant downside for SNDK despite its AI-driven surge and margin expansion.
SanDisk (NASDAQ:SNDK) shares have surged 4,841.8% over the past year, driven by an AI memory supercycle and gross margins expanding from 22% to 78% in Q3. However, a $1,704.60 price target implies 27% downside from current levels, with analysts citing an RSI of 99 and valuation concerns as signs of overextension.
The stock remains highly divisive, with Citigroup recently raising its target to $2,500. Sustained multi-year contracted supply deals and a projected memory shortage through 2028 could support further gains, but the bear case warns of a potential 48% drawdown to $1,204.
Analysts recommend treating the $1,704.60 target as one datapoint amid conflicting views, noting the stock trades above consensus valuations despite its improved profitability.