SanDisk Shares: Market Experts Identify Buying Opportunity Amid Sector Pressures

SanDisk's rally pauses on tariffs & Google AI news, but analysts see a buying opportunity ahead of key Q3 results, citing strong NAND demand drivers.

A recent rally in SanDisk's share price has been interrupted by new US tariff announcements and technological developments from Google. Despite macroeconomic concerns weighing on the entire memory chip sector, Wall Street analysts are maintaining a defensive stance around the NAND flash specialist. Leading researchers interpret the current pullback not as a trend reversal, but as a clear chance for investors to enter the market.

High Stakes for the Upcoming Quarterly Report

The next significant test for the company arrives on April 30 with the release of its third fiscal quarter results. Expectations are notably high. Company management has projected a gross margin between 65% and 67%. This represents a substantial leap from the approximately 52% margin reported in the prior quarter. Earnings per share are forecast to land between $12.00 and $14.00, a stark contrast to the loss recorded in the same period last year.

This report will provide a crucial data point for assessing the real-world impact of new trade tariffs on the company's operational profitability. The overarching trend for SanDisk remains positive, with shares having gained over 167% in the first quarter of 2026. The ongoing expansion of AI infrastructure continues to drive a structural shortage in NAND flash memory, which industry experts believe could persist until 2028.

Sector-Wide Headwinds Create Challenges

Broad pressures are currently impacting the memory market. Google's new AI model, TurboQuant, has sparked concerns that future storage requirements for artificial intelligence applications might decrease. Concurrently, fresh US tariff proposals and a generally weak market environment are dampening sentiment. The S&P 500 recently concluded its weakest quarter since late 2022.

For SanDisk, escalating trade tensions with China present specific operational hurdles. The tariffs are expected to lead to increased costs and pose potential risks to global supply chains. This combination of factors has pushed the stock more than ten percent below its previous annual high.

Analyst Community Rallies with Bullish Targets

In spite of these challenges, financial analysts are standing firm with their optimistic assessments. Vijay Rakesh of Mizuho Securities considers fears of an imminent peak in memory demand to be exaggerated. He references the Jevons Paradox, noting that historically, improvements in technological efficiency have consistently led to higher overall spending, not lower.

Mark Newman of Bernstein similarly classifies concerns regarding TurboQuant as unfounded, judging its impact on NAND demand to be negligible.

Current price targets from leading firms underscore this confidence:
- Bernstein (Mark Newman): $1,000
- Citi (Asiya Merchant): $875
- Mizuho (Vijay Rakesh): $710

The consensus view is that the present market weakness offers a strategic entry point for investors, with fundamental drivers for the memory sector remaining intact.