Sandisk's stock has experienced a remarkable increase of 544% year to date, primarily fueled by the surge in artificial intelligence adoption, which has created a strong demand for memory and storage solutions. JPMorgan analyst Harlan Sur noted that the company is well-positioned to benefit from this trend, prompting the upgrade from neutral to overweight.
The bank set a price target of $2,250 per share, indicating a potential upside of 47% based on Thursday's closing price. Sur highlighted that Sandisk's new business model, which includes structured pricing and long-term agreements with major clients, is expected to stabilize its revenue and enhance profit margins.
This model has already resulted in eight signed agreements worth approximately $94 billion, with an average contract duration exceeding four years. The consensus among analysts is largely positive, with 22 out of 25 recommending buy or strong buy ratings for Sandisk, reflecting strong confidence in the company's future performance amid ongoing demand for NAND memory