Why Sandisk Stock Was a Winner on Wednesday

On a slightly down Wednesday for the stock market, Sandisk's (NASDAQ: SNDK) equity landed in positive territory. On the back of an analyst's price target raise, the storied memory module specialist finished the trading session 0.6% higher, eclipsing the 0.1% dip of the bellwether S&P 500 index.

More bullish, but not bullish enough

Almost exactly two weeks before Sandisk is scheduled to publish its fiscal fourth quarter of 2026 results, Aaron Rakers of influential bank Wells Fargo made that move. He increased his price target on the specialized tech stock substantially, to $1,620 per share from $1,250.

That didn't quite make him a bull on Sandisk, as he maintained his equal weight (i.e., hold) recommendation.

According to reports, Rakers wrote that the company has good momentum just now, with increases in long-term, multi-year supply contracts with major cloud computing and data center clients. He also waxed optimistic about Sandisk's strength in the high-end enterprise solid-state drive (eSSD) segment of the market, among other positive factors.

Critical supply

Sandisk has done well as a go-to provider of flash memory (its specialty) for the many clients on the market looking to ramp up artificial intelligence (AI) compute. For believers in the longevity and power of the AI revolution, like myself, the company is a fine play on this.

I'm more bullish than Rakers on the company's future, and while the stock is expensive, it sure looks like a buy to me.

Wells Fargo is an advertising partner of Motley Fool Money. Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.