SanDisk’s relentless AI-driven rally pushed the stock to an all-time high of $1,840 on June 3, a gain of roughly 7% during midday trading. The milestone came even as the broader market drifted lower, underscoring investors’ willingness to pay a premium for memory plays tied to artificial intelligence infrastructure. The shares have since eased slightly to $1,831.50, giving the company a market capitalisation of about $288 billion.
The immediate catalyst was fresh industry data from Counterpoint Research, released on June 2, showing the global NAND flash market reached $46 billion in the first quarter of 2026. That figure is nearly double the previous quarter’s output and represents a 350% surge from the same period a year earlier. Enterprise SSDs aimed at server infrastructure now account for 43% of NAND revenue, a share expected to climb above 60% by year-end.
But beneath the headline numbers lies a more nuanced picture. Samsung dominates with a 29% market share, followed by SK Hynix and Kioxia. For SanDisk, the battle for third place has become uncomfortably tight. Kioxia, Micron, SanDisk, and China’s YMTC are locked in a close race, with YMTC rapidly expanding and now holding 13% of the market. The gap between SanDisk and Micron is shrinking, meaning pricing power and capacity allocation will be critical variables going forward.
The data center segment, however, provides the most powerful tailwind for the stock. In SanDisk’s third fiscal quarter (ended March 2026), data center revenue jumped to $1.467 billion, up from $440 million in the prior quarter and just $197 million a year earlier. Total revenue reached $5.95 billion, a 97% sequential increase, while GAAP net income came in at $3.615 billion, or $23.03 per diluted share. On a non-GAAP basis, earnings per share were $23.41. Edge computing added $3.663 billion and the consumer business contributed $820 million.
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For the fourth quarter, management guided revenue in a range of $7.75 billion to $8.25 billion, with non-GAAP earnings per share of $30 to $33. The non-GAAP gross margin is expected to land between 79% and 81%. These projections hinge on sustained tight NAND supply and robust demand from hyperscale data centres. SanDisk has been locking in multi-year customer agreements with financial commitments, and by the end of the third quarter three such “New Business Model” contracts had been signed. Two more were added in the fourth quarter.
The balance sheet has been strengthened as well. The company repaid all outstanding loans in March and retains a $1.5 billion revolving credit facility. Despite the solid fundamentals, the valuation leaves little room for error. The stock trades at a price-to-earnings multiple of 63.68 based on trailing earnings per share of $28.76. At that level, any disappointment in NAND pricing or a slowdown in data centre spending could trigger a sharp correction.
Investors will get the next major update on June 9, when SanDisk management speaks at the Mizuho Technology Conference at 3:20 p.m. EDT. The market will parse every comment on NAND supply, SSD demand, and customer retention for signs of whether the current momentum can be sustained. For now, the rally is built on a foundation of exploding data centre revenue and a historic NAND cycle — but the competition for market share and elevated expectations are risks that cannot be ignored.
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