- Jefferies slashed its price target on SanDisk stock by 42% to $1,750, drawing ridicule from ZeroHedge via a public post.
- SanDisk reported record quarterly revenue of $8.97 billion, a 372% year-over-year gain, and non-GAAP gross margin of 84.6% — both well above guidance.
- Despite the blowout earnings and a $14 billion share buyback authorization, the stock has dropped 25% over the past month, and multiple analysts have cut their targets.
- Analyst Blayne Curtis of Jefferies had raised the price target seven times since July 2025 from $60 to $3,000, maintaining a “buy” rating at each step before today’s sharp reduction.
This morning, Jefferies slashed its price target on SanDisk stock 42% from $3,000 to $1,750, a move that ZeroHedge openly mocked. Just six weeks earlier, on June 26, the same analysts had set the $3,000 target.
The AI chipmaker yesterday reported the best quarterly earnings in its history. Revenue surged 372% year over year to $8.97 billion, far exceeding its own guidance of $7.75–8.25 billion. Non-GAAP gross margin hit 84.6%, dwarfing the prior year’s 26.4% and topping the 79–81% guidance range.
Non-GAAP earnings of $39.25 per share Forex/why-sandisk-stock-fell-after-q4-fy2026-earnings” rel=”noreferrer noopener”>beat the FactSet consensus estimate by over 12%. Data center revenue, a newly built business, grew 103% in a single quarter to $2.98 billion.
Chairman and CEO David Goeckeler told analysts the company “delivered record revenue, gross margin, and earnings per share, each above the high end of our guidance, and repurchased $4.5 billion of company stock.” The board then authorized another $14 billion in share buybacks.
Despite these celebratory figures, the stock has crashed 25% over the past month. Analysts have cut estimates: Susquehanna reduced 6%; Evercore trimmed to $2,800 from $3,100; Citi dropped to $2,100 from $2,500; and Jefferies cut 42%, the deepest of all.
Today’s reduction to $1,750 is Jefferies’ first interruption of an up-only trend. Analyst Blayne Curtis had raised the price target seven times since July 2025 from $60 to $3,000, maintaining a “buy” rating at every rung. Meanwhile, Morgan Stanley analyst Joseph Moore reached his $1,750 target on June 3 and left it unchanged through the record earnings and the subsequent slide. Jefferies has now taken nine weeks to arrive at the same number via $3,000.
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