Sandisk Corporation (NASDAQ:SNDK) stock remained a closely watched semiconductor stock this week as China-related uncertainty rattled the sector even while analysts grew more optimistic about AI-driven NAND demand and Sandisk’s long-term growth outlook.

China Headlines Pressure Sandisk Shares

Sandisk shares fell about 3% on Wednesday after reports said President Donald Trump plans to discuss AI-chip policy with Chinese President Xi Jinping during meetings in Beijing.

China remains an important market for Sandisk, accounting for 28% of fiscal 2025 revenue, although that exposure declined from 38% in fiscal 2024 and 2023.

The geopolitical spotlight intensified after NVIDIA Corp. (NASDAQ:NVDA) CEO Jensen Huang joined Trump’s China delegation at the president’s personal invitation.

NVIDIA later confirmed Huang attended to support the administration’s objectives.

Former U.S. Commerce Secretary Carlos Gutierrez described Huang’s participation as symbolically important but said the U.S. remains far from reaching any agreement with China on AI chip export controls, keeping uncertainty elevated across the semiconductor sector.

S&P Turns More Positive On Sandisk

On Tuesday, S&P Global Ratings upgraded Sandisk after the company strengthened its balance sheet and repaid all outstanding debt.

The agency said Sandisk now holds $3.7 billion in cash and maintains a net cash position under S&P’s adjusted credit metrics.

S&P also highlighted Sandisk’s $6 billion share repurchase authorization and said the company should still preserve strong liquidity while returning capital to shareholders.

The agency added that Sandisk’s positive outlook could support another upgrade if the company continues generating strong cash flow while maintaining a healthy net cash position.

AI And Data Center Demand Boost NAND Outlook

S&P expects Sandisk to continue benefiting from tight NAND supply conditions through fiscal 2027 as AI and data center demand push pricing higher.

The agency noted that Sandisk’s data center revenue surged 191% year over year, while all business segments posted more than 100% year-over-year increases in average selling prices per gigabyte during the April quarter.

S&P projects Sandisk’s revenue will climb to about $19 billion in fiscal 2026 and exceed $30 billion in fiscal 2027. The agency also forecast EBITDA margins of 62% in 2026 and above 70% in 2027.

At the same time, S&P cautioned that the memory market remains cyclical and highly competitive, with Sandisk competing against larger rivals such as Samsung Electronics Co. Ltd. (OTC:SSNLF), SK Hynix, and Micron Technology Inc. (NASDAQ:MU).

Earnings & Analyst Outlook

Looking further out, the next major catalyst for the stock arrives with the August 13, 2026 (estimated) earnings report.

  • EPS Estimate: $32.80 (Up from 29 cents YoY)
  • Revenue Estimate: $8.12 Billion (Up from $1.90 Billion YoY)
  • Valuation: P/E of 49.5x (Indicates premium valuation relative to peers)

Analyst Consensus & Recent Actions: The stock carries a Buy rating with an average price forecast of $1023.83. Recent analyst moves include:

  • Bernstein: Outperform (Raises Forecast to $1700.00) (May 4)
  • Citigroup: Buy (Raises Forecast to $1300.00) (May 1)
  • RBC Capital: Sector Perform (Raises Forecast to $1000.00) (May 1)

SNDK Price Action: SanDisk shares were down 3.19% at $1401.00 during premarket trading on Thursday, according to Benzinga Pro data. Sandisk's massive 12-month gain of 3,266.61% has also raised expectations for sharper volatility and increasingly aggressive dip-buying behavior compared with most large-cap technology stocks.

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