Bank of America Boosts Sandisk's Price Target to $2,100 on Strong AI-Driven Demand

Bank of America just turned up the heat on SNDK, hiking its price target to $2,100 - a hefty 34% premium over last Friday's closing price. Even with the stock retracing some ground following recent volatility, the bank remains bullish, riding the wave of AI-driven memory demand.

Sandisk's stock has been on a rollercoaster this year, soaring over 550% in 2026 alone before last week's sharp pullback of more than 15%. That dip came on the heels of Broadcom's earnings and some profit-taking after a blistering rally across AI-related tech stocks.

According to analyst Wamsi Mohan, Sandisk's grip on pricing power looks solid as industry-wide NAND memory shortages persist, fueled by soaring AI infrastructure needs. Mohan noted that Sandisk has pre-sold over a third of its fiscal 2027 revenue through new business model contracts, leaving more than 60% of its NAND inventory still available - but at elevated prices compared to a year ago.

These contracts, Mohan argues, offer more than just revenue visibility; they represent stable earnings streams by locking in supply commitments. That's a big deal in a market often prone to wild swings and cyclical inventory glut risks.

What if AI demand takes a breather? Mohan anticipates Sandisk's leaner margin structure will give it the flexibility to scale down production without painful cash flow hits-a capability it lacked in prior cycles, when it had to keep producing wafers just to stay afloat.

This strategy could cushion Sandisk against a sudden drop in orders and preserve profitability, setting it apart from competitors who might face steeper challenges with excess inventory and price wars.

While the recent selloff raised eyebrows, the combination of contract-backed revenues, pricing power, and production agility paints a more resilient picture. Still, the pendulum of memory chips swings fast, and external factors like broad semiconductor trends and geopolitical influences could throw curveballs.

Bank of America's upgraded target might turn heads, but whether that $2,100 mark is reached depends on how sustained the AI spending spree really is and if Sandisk can keep its edge in tightening supply-and-demand conditions.