Seeking Alpha upgraded SanDisk to a buy rating with a fiscal year 2027 price target of $3,000. Surging demand for NAND storage in AI data centers drives the bullish valuation. The company is shifting toward higher-value products and a partnership with SK hynix to secure premium margins.
SanDisk reported a 251% year-over-year revenue increase in the third quarter. The company also authorized a new $6 billion stock buyback program.
A potential strike at competitor Samsung threatens to tighten global memory supply and increase pricing. However, some analysts warn that the recent stock rally suggests the market cycle is nearing its peak.