Wedbush Pounds the Table—Buy Sandisk Before August 5 Earnings

Key Points

• Wedbush raised its Sandisk revenue, earnings, and price targets above consensus, forecasting nearly $9 billion in quarterly revenue and earnings per share exceeding $37.50.
• Analysts hold a Moderate Buy consensus with price targets reaching $3,000 to $3,200, and institutional investors, who own nearly 80% of shares, have resumed buying.
• Sandisk has evolved into an AI infrastructure provider through NAND flash and solid-state drive storage, though competition and high valuation remain key risks.

Wedbush is making a bold call on memory chip maker Sandisk NASDAQ: SNDK. The firm aggressively raised its targets for revenue, earnings, and stock price, citing pricing trends and a high likelihood that management had underestimated the strength.

Wedbush hiked its revenue and earnings targets by quadruple-digit basis points, pushed both above consensus, and warned that even these aggressive moves may understate the company's strength.

As it stands, Wedbush sees revenue approaching $9 billion for the fiscal 4th quarter, earnings per share exceeding $37.50, and the strengths persisting into subsequent years.

The long-term forecast echoes one issued by SK hynix's NASDAQ: SKHY CEO, suggesting that memory chip market constraints will persist at least until 2028, as capacity ramps take time and demand is just that high.

As it stands, consensus forecasts suggest revenue of $8.33 billion and adjusted earnings per share of $34, representing more than 11,000% growth over the prior year.

Sandisk Stock Can Double in Price From Here

Wedbush isn’t the only analyst doubling down on their Sandisk targets in early Q3. Analyst trends include increasing coverage, firming sentiment, a Moderate Buy consensus rating, an 84% Buy-side bias among 25 analysts tracked, and an uptrend in the consensus price target.

As aggressive as Wedbush’s 62% price target increase, its $2,000 forecast falls far short of the high-end range. Revisions in early July put this market in the $3,000 to $3,200 range, sufficient for nearly 100% upside from mid-July support targets. The likely outcome is that Sandisk’s upcoming earnings report will trigger another wave of upgrades and revisions, keeping the uptrend intact.

Institutional activity aligns with bullish analyst activity and the stock's price upswing. The group owns nearly 80% of the shares and has been buying at a rate of more than $2 per $1 over the trailing 12 months. While profit-taking was the highlight in Q2 2026, the group resumed accumulation in early Q3, underpinning market support in the $1,650 to $1,750 range. With this in play, investors can assume downside risk is limited ahead of the release. The risk is that the upcoming release will fall short of loftiest expectations, setting the stage for continued market consolidation.

The technical outlook is bullish. The SNDK market has been strengthening since the IPO, gained traction in late 2025, and has been in rally mode since. The story as of mid-July is that a near-term peak was reached and price correction ensued, setting up the pre-earnings opportunity. Signals, including MACD convergence, suggest the recent high will be at least retested and that higher highs are likely.

Why Is Sandisk Important to AI? Non-Volatile Memory Storage

Sandisk is important to AI because of memory. Its NAND Flash and solid-state drives provide permanent, non-volatile (not requiring power to retain data) memory storage critical to AI applications. While DRAM provides ultra-fast workspace directly connected to the processor, Sandisk products serve as the reservoir from which DRAM pulls the information it needs. Without it, there is no way to store the massive amounts of data being created, much less use it effectively. The takeaway is that Sandisk has transitioned from a legacy consumer brand that made flash drives to an AI-critical infrastructure provider with a custom suite of AI-enabling products.

Sandisk has three major catalysts this year that will mark milestones in its transition to AI infrastructure pure-play status. The first is the launch of high-bandwidth flash memory, intended to alleviate bottlenecks in data transfer within the data center. The first engineering samples are expected to ship later this year and are viewed as a validation achievement.

The second catalyst is locking in long-term contracts. Until now, memory was sold largely on a spot basis, but Sandisk is following industry suit, shifting to a more visible contract model—each design win equates to margin lock-in and reduced cyclicality, improving visibility for investors. The final catalyst is the upcoming release and guidance, expected to build on strengths revealed in the record-setting Q3 release.

Sandisk’s biggest risk is competition. The flash and NAND memory markets are highly competitive, with players like Samsung Electronics OTCMKTS: SSNLF commanding market share. The risk is that one of its competitors emerges with better technology, usurping the existing opportunity. The caveat is that demand dynamics suggest ample room for numerous players. Valuation is also a risk, with the stock trading at approximately 25x this year's earnings forecast, which reflects robust growth. Forecasts suggest the valuation falls as low as 8x as soon as next year.