Prediction: This Is What Sandisk Stock Will Be Worth in 12 Months

Sandisk (NASDAQ:SNDK) stock has been on a tear over the past year, with shares of the company rising by an incredible 2,400% during this period, as of this writing.

The semiconductor stock's stunning rise is justified by its phenomenal growth. The NAND flash storage products that the company manufactures are in terrific demand from artificial intelligence (AI) data centers, a trend that's likely to continue over the coming year. In fact, I won't be surprised to see Sandisk stock jumping significantly higher over the next 12 months.

Let's see where this high-flying AI stock could be after a year.

Image source: The Motley Fool.

Sandisk stock is headed higher, according to Wall Street

Wall Street believes that Sandisk still has room to jump higher. This is evident from the stock's 12-month median price target of $2,200, which suggests potential upside of 26% from current levels. What's worth noting is that 25 of the 31 analysts covering Sandisk suggest buying the stock.

However, I think that Wall Street is underestimating Sandisk's upside potential. The NAND flash market that Sandisk serves is poised to keep growing next year. Market research firm TrendForce sees the NAND flash industry's revenue rising almost fourfold in 2026 to $271 billion from $71 billion last year. It anticipates another 40% increase in the NAND flash industry's revenue in 2027 to $379.4 billion.

Not surprisingly, Sandisk is confident of maintaining its phenomenal growth rate in fiscal 2027. The company released its fiscal Q4 2026 results (for the year ended July 3) on Aug. 5. Its quarterly revenue surged 372% year over year to $8.96 billion. What's more, the supply constrained environment in the NAND flash market led to an eye-popping 135x year-over-year increase in non-GAAP earnings per share to $39.25.

The company expects $10.3-$10.8 billion in revenue for the current quarter. That points to a potential year-over-year revenue increase of 357% at the midpoint. Meanwhile, the $45.00 earnings-per-share estimate for the current quarter suggests a potential 37x year-over-year jump in its bottom line. The guidance suggests that Sandisk's exponential growth is here to stay.

This also explains why analysts have increased their revenue and earnings per share forecasts for the current fiscal year.

SNDK Revenue Estimates for Current Fiscal Year data by YCharts

Why Sandisk's returns could be higher than expected

Sandisk's earnings could triple in fiscal 2027 on the back of a 142% jump in the top line. However, the company's fiscal Q1 forecast suggests it could exceed those numbers.

A key reason analysts anticipate Sandisk's growth will slow as the year progresses is a potential increase in NAND flash supply next year. Specifically, TrendForce predicts that NAND flash supply could overtake demand in the second half of 2027. For comparison, the NAND flash market could remain undersupplied by 4% to 5% in 2026.

However, it remains to be seen if that's actually the case. Major memory manufacturers have been prioritizing the production of high-bandwidth memory (HBM) owing to higher margins and robust demand. As a result, NAND flash wafer starts at Samsung and SK Hynix, two of the leading players in NAND flash, dropped in 2025.

SK Hynix's NAND flash output dropped to 1.7 million wafers in 2025 from 1.9 million in 2024, according to market research firm Omdia. Samsung's output also fell slightly to 4.9 million wafers from 4.68 million wafers over this period. These companies account for 47% of the NAND flash market, and their production cuts could keep the market undersupplied even in 2027.

So, I won't be surprised to see Sandisk's growth exceeding expectations in fiscal 2027 (which will end in July next year). However, even if its earnings per share jump by 3x to $214.10, as seen in the chart earlier, and it trades at even 15 times earnings at that time, a significant discount to the S&P 500 index's forward earnings multiple of 21, this tech stock could soar to $3,211 over the next 12 months. That indicates potential upside of 84%.

Sandisk's shares have pulled back by 25% from their recent 52-week high. This gives savvy investors a nice buying opportunity, which they should consider capitalizing on due to its healthy upside potential.

Harsh Chauhan has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.