Sandisk is up nearly 250% this year, and a new Wall Street superbull emerges. Here's their thesis.

One of the market's hottest stocks of 2026 has a caller bull piling onto the trade.

Longtime tech expert Amit Daryanani initiated sum connected Sandisk (SNDK) with an Outperform standing and $1,200 terms people successful a caller enactment connected Tuesday. A sum initiation reflects the archetypal clip a Wall Street expert is offering probe sum connected a institution for the firm's clients.

The terms people puts him among the highest connected Wall Street for Sandisk.

At $1,200, Daryanani estimates astatine slightest 27% upside successful Sandisk from existent terms levels.

"We judge SNDK is levered to 1 of the astir charismatic areas of the AI infrastructure stack – information storage, wherever request is accelerating and proviso remains constrained astatine minimum done 2028 if not beyond," Daryanani wrote. "While concerns astir highest NAND pricing and cyclicality persist, we deliberation the existent rhythm is structurally tighter and much durable, underpinned by AI-driven request and sustained proviso discipline."

Not each tech stocks are experiencing capitalist fatigue.

Sandisk is simply a once-forgotten representation spot subordinate founded successful 1988 that sells information retention devices and solutions based connected NAND flash technology. The company's banal has skyrocketed 246% successful 2026. Share prices person accrued by much than 2,700% implicit the past year.

Read much astir Sandisk's banal moves and today's marketplace action.

The AI superior expenditures roar sweeping the US has funneled down to Sandisk and rival Micron (MU). As hyperscalers physique AI systems, request for representation chips has surged. These chips store and determination information for AI models, which necessitate ample volumes of accusation to execute astatine precocious levels.

Memory has go 1 of the tightest parts of the AI proviso chain, experts say.

Yahoo Finance information shows Wall Street is looking for outsized fiscal show from Sandisk this twelvemonth to enactment its lofty banal valuation.

Analysts estimation Sandisk volition study fiscal 2027 net maturation of astir 133% compared to 16% maturation for the S&P 500 (^GSPC).

Earnings estimates for Sandisk for this fiscal twelvemonth and adjacent person accrued much than 5 times successful the past 90 days, according to Yahoo Finance data.

Daryanani added, "Despite beardown banal performance, we spot further upside driven by net revisions, premix displacement toward endeavor SSD, and aggregate re-rating."

Brian Sozzi is Yahoo Finance's Executive Editor and a subordinate of Yahoo Finance's editorial enactment team. Follow Sozzi connected X @BrianSozzi, Instagram, and LinkedIn. Tips connected stories? Email [email protected].