SanDisk Plunges 11% After Earnings Release, Why Does Wall Street Predict a 76% Surge?

▲ SanDisk (SNDK)/AI-generated image ©

Despite a sharp drop in stock price after its earnings announcement, Wall Street experts predict that memory semiconductor giant SanDisk will achieve a rapid rebound of over 70% in the next 12 months.

According to cryptocurrency specialized media Finbold on August 7 (local time), SanDisk (SNDK) stock price, based on its recent closing price of $1,258.58, has plummeted by about 46% compared to its peak recorded at the end of June. However, on a year-to-date (YTD) basis, it still maintains a record-breaking increase of 357.27%. TipRanks data analysis shows that financial experts view the current volatility as a temporary phenomenon and have given a strong buy rating for SanDisk.

After a flood of new earnings forecasts, financial analysts set SanDisk's 12-month average target price at $2,220, which is 76.39% higher than the current price. Out of 10 reports published on August 6, nine maintained or newly issued a buy rating, with only one expert issuing a hold rating.

Aaron Rakers of Wells Fargo, who downgraded his investment opinion to "hold," lowered his target price from the previous $1,600 to $1,420, but this still indicates upside potential compared to the current stock price. Srini Pajjuri of RBC Capital, who provided the lowest target price, also set a target of $1,300, seeing a 3.29% upside. Amit Daryanani of Evercore ISI revised his target price from $3,100 to $2,800 while maintaining the most aggressive buy rating. Blayne Curtis of Jefferies drastically lowered his target price by 41.67% from $3,000 to $1,750 but still maintained a buy rating.

In contrast, market investors' reactions significantly diverged from Wall Street's positive assessments. SanDisk's stock price plummeted by approximately 11% from its Q4 2026 earnings release until the close on August 6, and only partially recovered losses in Friday's pre-market trading, showing a decline of about 10%.

Despite solid quarterly results, the primary reason for the stock price decline is attributed to the Q1 2027 earnings forecast. SanDisk's projected revenue for the next quarter, between $10.3 billion and $10.8 billion, remained at the lower end of the market's average expectation of $10.8 billion, which is interpreted as having disappointed investors.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*