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SanDisk (NASDAQ: SNDK) shares increased by nearly 9% due to positive catalysts in the memory sector, notably driven by Micron's strong Q1 results and bullish forecasts for AI-driven NAND demand. Micron reported record high bandwidth memory and data center storage, predicting supply constraints will persist into 2026.

NAND flash memory prices rose mid-teens percentage in the last quarter, following a high single-digit increase previously, with NAND sales up 22% sequentially. This price surge directly benefits SanDisk's revenue from data center and enterprise NAND products.

SanDisk's Q1 revenue reached $2.31 billion, exceeding consensus, with a forecast of a 13% increase to $2.6 billion in Q4. Analysts predict a 42% revenue growth for fiscal year 2026. Post-results, Wall Street's conviction in SanDisk surged, with multiple firms raising price targets, including Benchmark's $260, Jefferies' and Mizuho's $250, and Bernstein's $300 target, reflecting strong demand in the AI server market.