SanDisk's stock has soared 580% this year. JPMorgan expects it to rise another 1.5 times.
At the same time, stocks are now about a third cheaper than they were in June
Since the beginning of the year, SanDisk's stock price has risen nearly sevenfold / Photo: Unsplash.com / TheRegistri
Shares of memory chip maker SanDisk could rise another 47% after surging nearly sevenfold since the start of 2026, driven by structural growth in demand for products related to AI development, according to JPMorgan. The bank raised its rating on the company’s stock from Neutral to Overweight.
Details
The accelerated adoption of AI is driving up demand for memory and data storage systems, creating supply constraints. SanDisk is particularly well-positioned to capitalize on this trend, specifically the growing demand for NAND memory for AI inference (generating responses to user queries), CNBC reports, citing a note from JPMorgan. The bank’s analysts have set a price target of $2,250, which is 47% higher than the closing price on August 13.
SanDisk’s new business model, which the company unveiled on August 13 at its Investor Day in New York, could provide an additional boost. It involves long-term agreements with major customers, structured pricing mechanisms, and advance payment for products.
“The new business model has structurally improved SanDisk’s margins and significantly reduced the cyclicality of its business,” says JPMorgan analyst Harlan Sur. According to him, the company has already signed eight such agreements with a combined value of approximately $94 billion. The weighted average term of the contracts exceeds four years.
Sandisk shares rose by about 6% during trading on August 14. The company had announced the previous day that it expects double-digit revenue growth in 2028–2030, driven by long-term contracts.
What Other Analysts Are Saying
Following SanDisk’s announcements, Wall Street welcomed the company’s improved business model and the stability of its pricing policy, according to Yahoo Finance. The contracts “are multi-year in nature, broken down by quarter and month, feature fixed pricing with a variable component, and include financial guarantees,” noted analysts at RBC Capital.
““Despite ongoing volatility in the memory market amid unprecedented demand and pricing, [SanDisk] management has provided a forecast of stable profitability, returns, and—perhaps more importantly—reduced volatility throughout the cycle,”, Yahoo Finance quotes Raymond James analysts as saying.
A total of 22 out of 25 analysts covering the company's stock recommend buying it, while the remaining three have a neutral stance, CNBC reported, citing data from LSEG.
This article was AI-translated and verified by a human editor
