Morgan Stanley upgraded Sandisk (SNDK) target price from $1,100 to $1,750, maintaining an overweight rating. The core thesis: AI inference demand is restructuring the NAND market, with hyperscale cloud customers paying premiums for KV cache and context storage, granting Sandisk sustained pricing power. The New Business Model (NBM) long-term agreements lock in high gross margins—~80% even at floor prices—making future profits highly predictable. Supply tightness persists, further supporting pricing leverage.

Morgan Stanley raised its price target for SanDisk (SNDK) from $1,100 to $1,750, maintaining an overweight rating. The core thesis: AI inference demand is restructuring the NAND market, cloud customers are less price-sensitive, and the New Business Model (NBM) agreements lock in high gross margins, while supply tightness gives the company sustained pricing power.