Shares in SanDisk jump nearly 9 per cent after JPMorgan raises its price target and highlights the company’s strategic position to benefit from rising demand for NAND flash storage linked to artificial intelligence infrastructure, amid strong growth projections and supply constraints.
SanDisk shares rose sharply on Monday after JPMorgan upgraded the stock and lifted its price target, arguing that the memory maker is well placed to benefit from expanding demand for NAND flash storage linked to artificial intelligence infrastructure. The shares closed 8.88 per cent higher at $1,786.85, after the bank raised its target to $2,250 and kept an overweight rating.
The bullish case rests on SanDisk’s position as one of the largest global NAND suppliers at a time when storage demand is tightening. JPMorgan pointed to a new business framework covering eight major customers with committed volumes and minimum financial guarantees, which it said could represent about half of bits in fiscal 2027 and roughly two-thirds in fiscal 2028. That structure is meant to give the company more predictable revenue, while reducing some of the volatility that has long defined the memory market.
SanDisk has also outlined an ambitious technology and financial road map. At its Investor Day, the company said it plans to introduce BiCS9 and BiCS10 QLC nodes, with the later generation offering 60 per cent higher bit density than BiCS9. It also guided for mid-to-high teens revenue growth in fiscal years 2028 to 2030, alongside non-GAAP gross margins of about 80 per cent and operating margins of 75 per cent. Chief finance officer Luis Visoso said the company was “optimizing for growth, sustainability and returns” and expects to return all excess cash to shareholders after investment.
The stock move comes against a wider backdrop of fast-rising demand for storage across data centres, enterprise systems and consumer products. Tom’s Hardware reported that SanDisk’s profits have climbed sharply on the back of AI-related orders, with hyperscaler and semi-custom revenue up 76 per cent, industrial and automotive sales up 63 per cent and consumer revenue up 52 per cent. The publication also reported that the company has been raising prices across its SSD range and plans further increases for enterprise NAND, underscoring how constrained supply is allowing suppliers to push through higher pricing.
Institutional interest has also strengthened. A filing showed Leopold Aschenbrenner’s Situational Awareness held $5.7 billion worth of SanDisk shares at the end of June, before trimming parts of its AI portfolio in July. More broadly, 114 hedge funds held the stock in the first quarter, up from 75 previously, while combined positions more than doubled to $11.3 billion, according to the filing.
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