Citigroup has raised its 12-month price target for Sandisk from $2,025 to $2,500, indicating a potential 31% upside from its recent closing price. This optimism is rooted in Micron's better-than-expected fiscal third-quarter results, which highlighted robust demand for NAND memory products amid tight industry conditions.
Analyst Asiya Merchant noted that Sandisk is poised to benefit from this favorable market environment, particularly as the company increases its focus on data center solutions, which are expected to enhance its profit margins over time.
The surge in demand for memory storage is largely attributed to the rapid adoption of artificial intelligence technologies, with major companies like Alphabet, Microsoft, and Amazon investing a combined $700 billion in AI data center infrastructure.
Sandisk's stock has already seen a remarkable increase of over 4,400% in the past year, reflecting the heightened demand for memory solutions, and it rose another 12% following the news. The consensus among analysts is overwhelmingly positive, with 20 out of 23 recommending Sandisk as a buy or strong buy, according to LSEG data