Storage Chip Stocks Hit Fresh Highs! SanDisk Surges 10%, Banks Aggressively Raise Targets

 

Fueled by relentless data center spending driving demand for storage solutions, U.S. memory chip stocks surged Tuesday, led by SanDisk.

 

SanDisk shares rocketed nearly 10% to a new all-time high, pushing its YTD gain to about 90% — far outpacing the “Magnificent 7” and broader indices. Since its spin-off from Western Digital in February last year, SanDisk stock has soared more than 1,100%.

 

Other memory names also posted strong gains: Micron rose as much as 5% intraday, Western Digital climbed over 3%, and Seagate jumped more than 2%. All three hit record highs during the session, though Micron and Western Digital pared gains to under 1% by close, while Seagate finished slightly lower.

 

Amid the rally, Citi upgraded multiple memory chip stocks, with the biggest move on SanDisk.

 

Citi kept its “Buy” rating and raised the SanDisk price target from $280 to $490 — a 75% increase — implying over 8% upside from current levels.

 

Citi also lifted its 2026 EPS forecast for SanDisk from $13.96 to $17.78.

 

The bank cited strong data center memory demand, favorable supply/demand dynamics, and SanDisk’s robust competitive moat. It expects continued share gains in enterprise SSDs.

 

Citi maintained a “Buy” on Seagate and raised the target from $320 to $385 (about 20% increase), implying ~18% upside.

 

Western Digital’s target was lifted from $200 to $280 (40% increase), implying ~25% upside.

 

Citi noted these companies remain key beneficiaries of “robust hyperscale data center demand supporting higher storage pricing.” It sees hyperscale capex remaining strong, boosting demand for power, storage, connectors, and fiber.

 

Analysts expect global data center capex to hit ~$600 billion in 2026 — up 50% YoY — driven by surging compute needs from hyperscalers, emerging cloud players, sovereign entities, and AI infrastructure builders.

 

With demand outpacing supply, pricing and margins in the memory industry are expected to keep improving.

 

ClearBridge Investments emerging markets equity manager Divya Mathur recently said the market significantly underestimates AI-driven memory demand.