**Sandisk’s Stock Performance Amid Memory Shortage**
Sandisk (NASDAQ: SNDK) has seen significant fluctuations in stock price, with a 34% increase in June driven by strong earnings from Micron, projecting the memory sector shortage to last until 2027. However, the stock has dropped 31% from June through July 7, raising investor concerns about the sustainability of profits in the sector.
Micron reported an 85% gross margin and 80% operating margin in its fiscal third quarter, indicating high profitability potential for Sandisk as well. Bank of America recently raised Sandisk’s price target to $2,100, anticipating $44 billion in revenue and $188 earnings per share by 2027, suggesting the stock is currently trading at less than 10 times forward earnings. Despite these positive projections, market sentiment remains volatile, influenced by broader concerns about AI infrastructure spending and future memory chip demand.
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