Prediction: Sandisk Stock Is Going to Hit $3,000 by the End of 2026. Here's the Math

With shares up by 508% so far in 2026, Sandisk (NASDAQ: SNDK) has been one of the best-performing stocks on the market. Its gains have been significantly higher than the 35% appreciation in the Nasdaq-100 Technology Sector index this year.

However, Sandisk stock has been under pressure lately. Its shares are down 28% from the 52-week high it reached just last month. The stock is now trading at just under $1,700 as of this writing, while its 52-week high was just above $2,350. The recent sell-off in this tech stock seems quite surprising, as there has been no company-specific news that should have ideally impacted Sandisk.

The pullback can be attributed to profit-taking by investors. After all, Sandisk has delivered stunning gains since its spin-off from Western Digital in February last year, and the recent sell-off in AI stocks has probably encouraged investors to book profits to preserve capital.

However, Sandisk's drop should be treated as a buying opportunity, especially considering that the stock could regain its mojo and touch $3,000 by the end of the year. Let's see why that may be the case.

Image source: The Motley Fool.

Sandisk's earnings are expected to triple this year

Sandisk's fiscal 2026 has just ended, and analysts estimate that its earnings per share jumped by a whopping 22x during the year to $66.51. What's worth noting is that Sandisk's adjusted earnings during the first nine months of fiscal 2026 stood at $31.32 per share. The company guided for $31.50 in earnings per share for fiscal Q4 at the midpoint of its guidance range, which would bring its annual earnings to $62.82 per share.

Analysts, therefore, are expecting a bigger jump in Sandisk's earnings in the recently concluded quarter. It won't be surprising to see the company actually live up to consensus estimates or even beat them. I say this because NAND flash prices are estimated to have risen by 75% quarter over quarter in Q2. Assuming Sandisk's earnings increase by a similar figure sequentially, its bottom line may have jumped to $40.97 per share in fiscal Q4 from $23.41 per share in fiscal Q3.

So, Sandisk could end up crushing Wall Street's expectations handsomely when it reports results next month. Moreover, analysts expect a 213% increase in Sandisk's earnings in fiscal 2028 to $208.22 per share. But don't be surprised to see Sandisk doing better than that. That's because the NAND flash shortage is expected to persist until the end of the decade, fueled by the structural growth in memory chip demand.

Moreover, NAND flash prices are anticipated to jump by a whopping 234% in 2026, according to Gartner. The research firm adds that "any meaningful pricing relief is not expected until late 2027," suggesting that Sandisk's phenomenal earnings growth will continue into next year.

Why the stock could easily hit $3,000 by the end of 2026

Sandisk stock needs to jump around 79% from current levels to hit $3,000. That doesn't seem like a big deal considering the astronomical gains this growth stock has already achieved this year. Moreover, the company's consensus earnings-per-share estimate of $208.22 for fiscal 2027 suggests that a $3,000 price is achievable by year-end.

Sandisk's fiscal 2027 has just begun. Assuming it clocks half of the projected earnings in the first half of the fiscal year, which will coincide with the second half of 2026, its earnings per share are likely to land at $104.11 for the next two quarters. If Sandisk trades at even 30 times earnings by the end of the year and achieves $104.11 in earnings per share, its stock price could cross $3,000.

It is worth noting that Sandisk is currently trading at 65 times earnings, so I am assuming a significant discount in its valuation. Also, the tech-laden Nasdaq-100 index trades at 35 times earnings. So, investors can expect a solid surge in Sandisk stock by the end of the year due to its phenomenal earnings growth, even if it trades at a discount to the tech sector.

Harsh Chauhan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Western Digital. The Motley Fool has a disclosure policy.