SanDisk (NASDAQ:SNDK) received a fresh bullish endorsement on Tuesday when Rosenblatt initiated coverage of the memory-chip manufacturer with a Buy rating and a $2,400 price target. The stock rose 4% following the market open. The target implies upside of more than 35% from the company's recent trading level of $1,766.64, a striking figure given that the shares have already appreciated over 540% in 2026 and more than 1,600% over the past twelve months.
At the core of Rosenblatt's thesis is the argument that artificial intelligence is fundamentally reshaping the role of NAND flash memory. Rather than functioning primarily as a commodity storage medium, NAND could become a strategically critical component of AI computing infrastructure as models expand in size and inference workloads grow increasingly data intensive.
"Historically, consumer, PC, and smartphone NAND demand was driven primarily by rising density and falling cost per bit. In AI systems, however, expanding model sizes and data-intensive inference increasingly prioritise density, performance, endurance, and supply certainty over the lowest absolute price," said Rosenblatt analyst Kevin Cassidy. The firm added that positioning NAND closer to compute engines can elevate its value to the overall system, and that SanDisk's technology roadmap supports this opportunity.
Technology roadmap and pricing tailwinds
Rosenblatt pointed to SanDisk's BiCS8 and BiCS10 platforms, which enhance areal density and lateral scaling while achieving comparable die capacity with fewer 3D layers than some competing designs. The company has developed NAND process technology for roughly 25 years alongside manufacturing partner Kioxia, giving it a deeply established position in the memory sector. SanDisk has also aligned itself with AI-related memory applications, including its High Bandwidth Flash technology, which management has described as an opportunity tied to AI inference growth.
Near-term pricing trends reinforce the bullish case. Susquehanna analyst Mehdi Hosseini forecasts a 60% sequential increase in NAND flash memory prices this quarter, followed by a further 25% rise in the next quarter.
Earnings validate the AI investment case
SanDisk's recent financial results have solidified its standing in the AI trade. Datacenter revenue climbed from $325 million in fiscal 2024 to $960 million in fiscal 2025 and $5.2 billion in fiscal 2026, representing 437% growth in the latest fiscal year. Total fiscal 2026 revenue reached $20.3 billion, up 175% year over year.
For the fiscal fourth quarter ended July 3, revenue hit $9 billion, up 372% from a year earlier and 51% sequentially. Diluted GAAP earnings per share came in at $43.97, compared with a loss of $0.16 in the year-earlier quarter and up 91% from the previous quarter.
Long-term margin targets underpin the $2,400 valuation
Rosenblatt's price target also rests on SanDisk's ambitious long-term financial framework. Management expects mid-to-high-teens revenue growth between fiscal 2028 and fiscal 2030, alongside approximately 80% non-GAAP gross margins, 75% non-GAAP operating margins and a 50% adjusted free-cash-flow margin. SanDisk's fiscal 2026 gross margin was 71.5%, a dramatic improvement from 30.1% the prior year.
Management's confidence is partly tied to New Business Model agreements signed with eight major NAND customers, which SanDisk says represent approximately two-thirds of bits in fiscal 2028. Rosenblatt conservatively estimates fiscal 2030 non-GAAP EPS at approximately $300 per share based on the company's framework.
Other analysts have also assigned elevated targets. Goldman Sachs holds a $2,200 target and Buy rating, while Mizuho maintains an Outperform rating and a $1,900 target. RBC Capital recently raised its target to $1,600 while retaining a Sector Perform rating.
S&P 100 inclusion adds a near-term catalyst
SanDisk's momentum received an additional boost from its addition to the S&P 100, effective September 21. S&P Dow Jones Indices confirmed the inclusion during the latest quarterly index rebalance. The move could generate incremental demand as funds and exchange-traded products tracking the index adjust their holdings, and it may raise SanDisk's visibility among institutional investors. Over the longer term, however, index membership is likely a secondary factor; the company's ability to sustain datacenter growth, pricing, margins and cash generation will remain more important to its fundamental valuation.
Insider selling warrants attention
The bullish analyst outlook comes amid substantial insider selling. SanDisk Chairman and CEO David Goeckeler sold 33,841 shares for approximately $53.3 million on September 17, according to an SEC Form 4 filing. The shares were sold at prices ranging from $1,567 to $1,587 under a Rule 10b5-1 trading plan adopted on May 29. Goeckeler beneficially owns 382,865 shares following the transactions, and he also sold about $51.7 million of shares on September 14 under the same plan.
While the sales may appear negative at first glance, particularly after the stock's extraordinary appreciation, the pre-arranged nature of the transactions makes them difficult to interpret as a management judgment on future prospects. With the stock up more than 1,600% over the past year, the sales could also reflect profit-taking following a dramatic increase in the value of Goeckeler's holdings. For investors, the more consequential question is whether SanDisk can convert the current AI-driven NAND boom into durable growth and margins.
This article is for informational purposes only and does not constitute financial advice.
