- Cantor Fitzgerald analyst C.J. Muse significantly raised price targets for SanDisk (SNDK) and Western Digital (WDC), citing strong AI demand and tight supply conditions.
- Both memory chip leaders are expected to deliver strong earnings beats, driven by broad market demand and a shift to higher-capacity products.
- Despite bullish long-term ratings, the current average analyst price targets suggest limited near-term upside from present stock levels.
- Potential long-term supply agreements for SanDisk could improve pricing visibility, similar to trends in the DRAM market.
Financial analysts are upgrading their outlook on top memory chip stocks SanDisk (SNDK) and Western Digital (WDC) in 2026, driven by Artificial Intelligence demand and industry-wide supply constraints. Consequently, Cantor Fitzgerald’s C.J. Muse boosted his price targets, maintaining Overweight ratings on both companies.
He raised SanDisk‘s target to $1,400 and Western Digital‘s to $500. However, the broader Street consensus implies more modest near-term movement, with average targets suggesting slight downside from current prices.
SanDisk is poised for another strong performance, fueled by demand across hyperscale, consumer, and client markets. Meanwhile, tight supply is pushing prices higher, directly supporting earnings growth.
The analyst also believes SanDisk could soon announce long-term supply agreements. These deals would mirror those in the DRAM market, creating a more stable revenue base.
Western Digital similarly benefits from robust nearline demand and customers adopting higher-capacity products. Consequently, Muse raised his financial estimates for 2026 and 2027, placing them above consensus expectations.
As AI continues to dominate finance news, both stocks are viewed as premier investment options. They boast solid growth year-to-date, which is forecasted to continue throughout 2026.
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