Quantitative trading giant Jane Street Capital disclosed a sharp increase in its stake in SanDisk (SNDK) according to regulatory filings complied by Tikr, making the flash memory maker the firm’s second-largest single stock position trailing only the SPDR S&P 500 ETF Trust. According to a July 29 SEC 13G filing, Jane Street held 7.41 million shares worth approximately $9 billion, representing a 540% increase that gives the firm just over 5% of SanDisk’s outstanding shares as the stock navigates a volatile year in the memory chip market.
Jane Street Boosts SanDisk Stock Stake to $9 Billion
Jane Street added 6,251,642 shares to its holdings, lifting the position to 5.47% of its total portfolio according to regulatory disclosures. The $9 billion stake places SanDisk ahead of major technology holdings like Amazon, Nvidia, and Microsoft in the firm’s portfolio. Only the firm’s $33 billion position in the SPDR S&P 500 ETF Trust (SPY) ranks higher. The massive allocation highlights distinct institutional conviction in a stock that sits down 36% from all-time highs despite returning over 3,000% across the trailing 12 months.
Why SanDisk Stock Price Surged in 2026
SanDisk separated from Western Digital in February 2025 and expanded its footprint in data center sales, which climbed to 38% of bit shipments by the end of fiscal 2026 in June, up from 12% a year prior. Full-year data center revenue rose 437% year over year to $5.15 billion according to company figures. SanDisk CFO Luis Visoso stated that data center demand is growing faster than supply, keeping bits on allocation beyond 2027. Chief Executive David Goeckeler noted that the broader NAND flash market driven by AI inference demand is expected to top $300 billion in 2026 and approach $500 billion in 2027, lifting SanDisk’s total full-year revenue to $20.25 billion—a 175% annual increase.
Did you know? SanDisk’s non-GAAP gross margin climbed to 84.6% in the fourth quarter, a sharp jump from 26.4% in the same period a year earlier, while non-GAAP earnings per share reached $39.25 compared to just $0.29.
Long-Term Supply Agreements Reshape Revenue Visibility
SanDisk altered its commercial strategy by replacing quarterly pricing negotiations with long-term supply agreements called New Business Models, or NBMs. SanDisk currently maintains NBMs with eight customers, including three U.S. hyperscalers. According to CFO Luis Visoso, these contracts average more than four years in length and represent at least $93.9 billion in total expected revenue. Remaining performance obligations tied to these agreements stood at $91.1 billion, backed by $16.5 billion in financial guarantees designed to protect the company if buyers fail to meet purchase commitments.
Pro Tip: CEO David Goeckeler told investors during the August Analyst Day that these long-term contracts extended the company’s demand visibility from just three months to more than four years in the span of two quarters.
Technology Investments and Market Risks
SanDisk is investing in High Bandwidth Flash, or HBF, technology tailored for AI inference workloads. The company reported taping out its first HBF memory chip and plans to ship customer samples next year with technical guidance from Tenstorrent CEO Jim Keller. However, analysts point out that investing in memory chips carries structural risks. The sector maintains a history of severe boom-and-bust cycles, with CEO David Goeckeler specifically referencing the challenging oversupply conditions of 2023 that compressed pricing across the industry.
Analyst Sentiment and Price Targets
Out of 16 analysts covering SNDK stock, 14 currently issue a “Buy” rating while two recommend a “Hold” according to market data. The average SanDisk stock price target sits at $2,203, representing a 48% premium over recent trading levels. Jane Street’s 13G filing omitted any commentary or price targets regarding future share performance, reflecting the firm’s standard practice as a quantitative trading and market-making institution.
Frequently Asked Questions
What is Jane Street’s stake in SanDisk?
According to a July SEC 13G filing, Jane Street holds 7.41 million shares of SanDisk valued at approximately $9 billion, making up 5.47% of the firm’s total portfolio.
How much did SanDisk’s data center revenue grow?
Full-year data center revenue rose 437% year over year to $5.15 billion, accounting for 38% of the company’s bit shipments by the end of fiscal 2026.
What are SanDisk’s New Business Models (NBMs)?
NBMs are long-term supply agreements averaging over four years with major customers, securing at least $93.9 billion in expected revenue with $16.5 billion in financial guarantees.
What is the average analyst price target for SanDisk stock?
The average analyst price target for SNDK is $2,203, according to coverage from 16 financial institutions.
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