SanDisk Price Target Raised 20% to $1,080 on Tight NAND Supply
Bank of America raised SanDisk’s price target by 20% to $1,080 from $900, citing tighter-than-expected NAND supply and surging AI inferencing demand. Cloud and data center revenue climbed from 1% in early 2024 to 15% by late 2026, and SanDisk expects to exceed guidance in its upcoming quarter.
1. Price Target Increase
The price target for SanDisk shares was lifted from $900 to $1,080, reflecting a 20% boost based on persistent supply constraints in the NAND market. The adjustment underscores confidence in pricing power as demand outstrips production capacity.
2. Structural Demand Shifts
SanDisk is benefiting from a mix shift toward less cyclical data center applications and AI inferencing workloads. Revenue from cloud and data center customers rose from just 1% of total sales in early 2024 to approximately 15% by late 2026.
3. Financial Outlook and Agreements
Management projects a beat-and-raise quarter driven by elevated NAND pricing, forecasting revenue and earnings above current guidance. The company is also negotiating long-term supply agreements to stabilize throughput and maintain margins through the cycle.