Sandisk Corp/DE (SNDK) Stock Forecast & Price Target

SanDisk's financial outlook is bolstered by a significant increase in NAND sales, reporting $2.3 billion in F4Q25, a rise from $2.2 billion in the previous quarter, alongside record DRAM sales of $9.0 billion. The company has provided guidance for a 10% increase in sales and a substantial 580 basis points improvement in non-GAAP gross margins driven by effective pricing strategies, product mix, and execution efficiency. Furthermore, SanDisk anticipates a 23.8% increase in earnings for F1Q26, underscoring robust operational performance and growth potential in a competitive market.

The non-GAAP gross margins for SanDisk in F4Q25 were reported at 45.7%, which represents an increase compared to the margins recorded in the preceding six quarters, ranging from 20% to 39.5%. Despite this improvement, the company’s overall financial trajectory may be a concern, as the previous periods of lower gross margins suggest vulnerability in profitability, potentially indicating challenges in cost management or pricing power within the NAND flash memory market. Additionally, the competitive landscape and reliance on vertical integration raise questions about long-term sustainability and growth potential, especially given the cyclical nature of the semiconductor industry.