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

SanDisk has demonstrated a strong financial performance with record NAND sales increasing to $2.3 billion in F4Q25, indicating a positive growth trajectory from $2.2 billion in F3Q25. The company has also provided optimistic guidance for F1Q26, forecasting a 10% increase in sales and a significant 580 basis point improvement in non-GAAP gross margins, suggesting enhanced pricing and operational execution. Additionally, anticipated growth in PC unit sales, as noted by industry peers, further supports the positive outlook for SanDisk's market position in the semiconductor industry.

SanDisk's non-GAAP gross margins for F4Q25 stood at 45.7%, reflecting a significant increase from previous quarters but still highlighting volatility in profitability over time. The fluctuations in gross margins, which have ranged from a low of 20% to a high of 45.7% over the past two years, suggest ongoing challenges in maintaining stable financial performance. This inconsistency raises concerns about the company's ability to sustain growth in an increasingly competitive market for NAND flash memory semiconductors, particularly following its spin-off from Western Digital in 2025.