1 Stock-Split AI Stock to Buy Before It Soars 328%, According to a Wall Street Analyst
Wall Street says this semiconductor stock is headed much higher in the next year, and historical data supports that possibility.
Sandisk (SNDK) is a semiconductor company that has experienced significant growth due to the memory chip supply shortage and the increasing demand for memory chips in the artificial intelligence sector. The stock has more than tripled this year, and Wall Street analysts consider it undervalued. Ben Reitzes at Melius Research is particularly bullish, with a target price of $3,600 per share, implying a 328% upside.
Recently, Sandisk announced an 8-for-1 stock split, set to take effect on November 19. This is often seen as an indirect indicator of a quality business, as splits typically occur after substantial and sustained price appreciation, which rarely happens to poor businesses. Historically, stocks have increased by an average of 25.4% in the 12-month period following stock split announcements, compared to the S&P 500's average return of 11.9% over the same time frame.
If Sandisk matches the historical average, its share price could increase by 25.4% from $1,330 to $1,667 per share, representing an 98% upside from its current price of $885, which is below the median target price of $2,100 from 34 analysts, implying a 150% upside.
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