Sandisk AI Memory Demand Surge

Western Digital — Sandisk, a leading NAND flash memory manufacturer, has experienced a dramatic surge in its stock price, driven by strong demand for AI-related memory chips and a series of positive developments. The company held an investor day where it provided long-term growth targets through fiscal 2030, including mid-to-high-teens revenue growth, approximately 80% adjusted gross margins, and plans to return all excess cash to shareholders. Western Digital — Sandisk also announced a partnership with SK Hynix to develop industry standards for High Bandwidth Flash (HBF) memory, a concept that uses flash memory as a substitute for DRAM, with Alphabet joining the consortium. Additionally, Western Digital — Sandisk unveiled its 9th-generation 2Tb QLC 3D flash memory technology, developed with Kioxia, which offers 33% faster read/write speeds. The company reported better-than-expected Q4 2026 results with revenue of $8.97 billion and adjusted EPS of $39.25. These developments have led to multiple analyst actions, including price target increases from Royal Bank of Canada — RBC Capital Markets and JPMorgan Chase, an upgrade from Argus Research, and a price target cut from Wells Fargo. Morgan Stanley also sounded an all-clear for AI stocks, boosting sentiment. Western Digital — Sandisk's stock has risen over 580% year-to-date, reflecting the market's enthusiasm for AI-driven memory demand.