JPMorgan has upgraded Sandisk (SNDK) from neutral to overweight and set a $2,250 price target, according to CNBC, implying about 47% upside from Thursday’s close. The call comes after a sharp rally in the stock, which is already up 544% year to date. JPMorgan analyst Harlan Sur said the rapid growth of AI inference is driving a structural inflection in NAND demand, putting Sandisk in what he described as a uniquely favorable position. He also pointed to faster AI adoption lifting storage demand and tightening supply conditions. At its investor day in New York, Sandisk said it would roll out new business models including structured pricing mechanisms and prepayment agreements with large customers. JPMorgan said that framework could help improve margins and reduce cyclicality. The company has already signed eight related long-term agreements with a total contract value of about $94 billion based on floor pricing, with a weighted average term of more than four years. LSEG data shows 22 of 25 analysts covering the stock rate it buy or strong buy, while the other three rate it hold.
JPMorgan upgraded Sandisk (SNDK) to overweight from neutral and set a $2,250 price target, CNBC reported. The target implies about 47% upside from Thursday’s close.
Sandisk shares are already up 544% this year. JPMorgan analyst Harlan Sur said rapid growth in AI inference is creating a structural inflection in NAND demand, leaving Sandisk in a relatively distinct position to benefit. He also said faster adoption of AI applications has lifted storage demand and tightened supply.
At its investor day in New York, Sandisk disclosed a new business model that includes structured pricing mechanisms and prepayment agreements with large customers. JPMorgan said the framework could improve the company’s margins and reduce business cyclicality.
Sandisk has signed eight related long-term agreements so far. Based on floor pricing, the total contract value is about $94 billion, and the weighted average contract term is more than four years.
According to LSEG data, 22 of the 25 analysts covering Sandisk currently rate the stock buy or strong buy, while the remaining three rate it hold.
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