Sandisk authorizes $14 billion stock buyback amid rising AI chip demand

Sandisk has authorized an additional $14 billion for stock buybacks, bringing its total remaining authorization to $15.5 billion. The company has seen significant growth and profitability in 2026, driven by soaring demand for memory chips used in AI infrastructure, which has led to chip shortages and increased pricing power.

Institutional investors have shown significant interest in the company. BlackRock Inc. acquired a stake valued at approximately $23.4 billion during the second quarter, while State Street Corp and Bank of America Corp DE purchased positions in the third quarter. Kingsview Wealth Management LLC also acquired a stake valued at roughly $3.85 million in the second quarter.

Market analysts maintain a generally positive outlook, with a consensus rating of ‘Buy’. While several firms, including Wedbush and Sanford C. Bernstein, have issued ‘outperform’ ratings, some investors note the importance of valuation. Warren Buffett has previously cautioned that stock repurchases are most effective when conducted at a discount to a company’s intrinsic business value.