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SanDisk Retraces From Peak While Holding a $15.5 Billion Buyback

Heavy AI-driven revenue and large free cash flow prompted the repurchase pledge and now shape a debate over whether the stock is a bargain or an overvalued risk.

Overview

  • SanDisk has been one of the market standouts in 2026, with Yahoo Finance reporting the stock up roughly 525% year to date after a rapid run into late June.
  • The company announced a $14 billion addition to its repurchase program earlier in August, leaving about $15.5 billion in remaining authorization to return cash to shareholders.
  • SanDisk said AI-focused demand has shifted its business toward data-center storage, with data-center revenue rising sharply and the firm generating multibillion-dollar free cash flow.
  • Shares have pulled back about 35% from their late-June highs, a drop that Wall Street and retail analysts read differently and that has raised questions about buyback timing and valuation.
  • Some analysts are highly bullish, with one $3,000 price target reported, while commentators have warned that memory market cyclicality and future NAND capacity could narrow margins and test the durability of current gains.