SanDisk (SNDK) Shares Soar 13.36% on Strategic Repositioning, AI-Driven NAND Demand Surge

Shares of SanDisk (SNDK) surged 13.36% on October 15, 2025, reaching their highest level since October 2025, with an intraday gain of 13.56%. The rally reflects renewed investor confidence in the storage giant amid strategic repositioning and sector-specific tailwinds.

Analysts highlight SanDisk’s undervaluation as a key driver, with a price-to-sales ratio of 2.5x—lower than the industry average—suggesting the stock trades at a discount relative to peers. This metric has drawn attention from investors seeking growth opportunities in the tech sector, particularly as the company’s market cap of $19 billion aligns with a 2.5x valuation multiple on its revenue. A discounted cash flow model further indicates shares are trading 22% below intrinsic value, amplifying interest in the stock.

Recent demand for NAND flash storage, fueled by AI infrastructure expansion, has positioned SanDisk as a beneficiary of the “supercycle” in edge computing and AI inferencing. Analysts note that NAND’s lower latency advantages over traditional storage solutions are critical for next-generation applications. Cantor Fitzgerald’s recent price target hike from $50 to $180 per share underscores this shift, driven by reduced capital expenditures in competing memory sectors like DRAM and HBM.

Despite a $23 million net loss in the latest quarter, SanDisk reported $7.35 billion in revenue, reflecting strong top-line growth. However, profitability remains a challenge, with a -30.2% pretax margin and a -18.93% return on equity. These metrics highlight the need for cost optimization, though the company’s $1.48 billion in cash reserves and $19 billion enterprise value suggest resilience in funding R&D and market expansion.

Strategic alignment with AI trends has further bolstered sentiment. The shift from data center training to edge inferencing is expected to drive long-term demand for SanDisk’s NAND solutions. However, risks persist, including a leveraged ratio of 1.4 and the cyclical nature of the memory market. Analysts caution that oversupply or geopolitical disruptions could reverse current gains, emphasizing the importance of monitoring the company’s ability to balance growth with operational efficiency.