SanDisk Corporation (SNDK) is capturing the investor’s attention as memory chips are becoming a critical asset in the AI pipeline. SanDisk’s share price last closed at $583.4 at a 2.43% loss in one day. The company’s stock price grew 70.78% in the last month, reflecting bullish sentiment on memory companies.
SanDisk manufactures DRAM chips and NAND flash/ SSDs that power phones, laptops, and AI data centres. The demand for these memory chips skyrocketed as AI hyperscalers started to gobble up 60-70% of the global supply. Since memory chips are as critical as Nvidia GPUs for AI data centres, market experts reckon that SanDisk might retrace a similar growth trajectory to Nvidia at the inception of the AI boom.
How AI is Driving Demand for Memory Chips
AI data centres often make news headlines for their massive power consumption. All of that power is consumed by high-end GPU stacks in these centres. All cloud-based AI models, such as ChatGPT, Gemini, and Claude, are trained and run in hyperscale data centres that need powerful GPUs and huge memory stacks to support their performance.
A memory shortage can bottleneck Nvidia GPUs’ performance, which were designed around HBM (High-Bandwidth Memory) that feeds it data at high speeds. When the AI demand skyrocketed, it also strained consumer PC builders. Consumer PC’s started to roll down their mid-model specs from 16GB-32GB to 8GB-16GB, reflecting the global RAM shortage.
The RAM shortage was one of the most discussed tech issues on social media and tech-oriented platforms. Users even claimed to stack RAM to sell it for higher prices in the future. The market version of such memory stacking is investors taking long positions in memory chip companies like Samsung, SK Hynix, SanDisk, and Western Digital.
South Korean Companies Riding the Memory Wave
South Korean companies SK Hynix and Samsung Electronics together dominate the DRAM industry with a combined market share of ~70%. Samsung’s share price grew 215% in 2025, while SK Hynix’s share price went up by 347%. Both companies beat the market expectations in their last earnings reports with higher revenue and higher EPS.
U.S. memory giants like Micron and Western Digital also shot up last year, with the demand for their consumer-grade products skyrocketing. The AI demand was instrumental in increasing the prices of consumer-grade memory devices, as hyperscalers are willing to pay more, which in turn widened the profit margins of memory manufacturers.
Analysts Take on SanDisk
Wall Street projects an average upside of 9.24% for SanDisk with a target price of $637.33. Morgan Stanley’s top analyst, Joosep Moore, sees 18.27% with upside, with a target price of $690. Blayne Curtis from Jefferies also shares a similar sentiment, as he projects 19.99% upside with a target price of $700.
Analysts have signalled a buy signal for SanDisk, but many investors reckon that the company may beat the market expectations in high proportions if the memory demand continues to rise as AI data centres are aggressively expanding. Investors are closely watching the SanDisk share price and its next earnings report due on May 13.
