Sandisk stock jumped Tuesday after BofA analysts more than doubled their price target for shares of the flash memory maker. Optimism about AI driving demand for data storage and memory hardware has fueled a rally for shares of Sandisk and other firms in the category, including Western Digital and Seagate Technology.
Analysts with BofA Securities upped their price target for Sandisk stock to 125 from 59. Analyst Wamsi Mohan wrote that AI demand is driving a surge in pricing for NAND flash memory solutions.
Sandisk is benefiting from "higher than expected demand from data centers starting to meaningfully impact pricing," Mohan added. Meanwhile, there are increasing content storage demands from consumer devices and restrictions on flash memory production in China, Mohan said. That should drive further tailwinds for pricing of NAND solutions, in the analyst's view.
With cloud providers like Amazon, Microsoft and Oracle racing to build huge data centers, Mohan is bullish about AI demand driving growth for Sandisk's cloud market sales. Sales from data center represented about 12% of Sandisk's revenue in the first half of 2025, he noted, compared to 6% in 2024.
"We model sustained double-digit cloud end-market bit growth in (calendar year) 2026 and 2027 and expect SNDK to gain share in the end-market," Mohan wrote.
Sandisk stock rallied more than 5% to 108.51 in recent action on the stock market today. Shares of the flash memory company have rallied more than 100% this month alone, helped by growing optimism about AI powered new demand for computer hardware. Sandisk makes flash-based memory and storage devices for both the enterprise and consumer market.
Data Storage And Computer Memory Stocks Rally
Sandisk was spun out from Western Digital earlier this year, with Western Digital choosing to split its hard-disk drive and flash memory businesses.
Western Digital acquired Sandisk in 2016 for $16 billion. But the combined company's stock slumped in 2022 as demand for computer hardware slowed, especially compared to a red-hot market driven by the pandemic and remote work in 2020 and 2021. Western Digital came under pressure from activist investor Elliott Management to split its business, a process the tech firm began officially in 2023.
Sandisk stock began trading again in February (with the company dropping the previous capitalization of the D in "disk.") Since then, shares have surged 180%, with much of its gains coming in recent weeks.
Meanwhile, Western Digital stock has rocketed 150% this year and its hard-disk drive rival Seagate stock is ahead 167%.
Flash memory chipmaker Micron is ahead nearly 100% year to date with its earnings report due late this afternoon.
Mizuho analyst Vijay Rakesh upped his price targets to Sandisk, Western Digital and Seagate in a note to clients last week. He holds an outperform call on all three stocks, as well as for Micron.
"Following our supply chain checks, we continue to see upside in the storage market with tight supply and price improvements in NAND/ (hard-disk drive) markets," Rakesh wrote Friday.
Sandisk Stock: 88 IBD Composite Rating
Sandisk stock has an IBD Composite Rating of 88 out of a best-possible 99, according to IBD Stock Checkup. The score combines five separate proprietary ratings into one rating. The best growth stocks have a Composite Rating of 90 or better.
Sandisk's score places it eight in the overall Computer-Data Storage group tracked by IBD. Micron is the top ranked stock in the group, followed by Western Digital and Seagate.
Sandisk stock has a very strong 97 out of 99 Relative Strength rating, highlighting its outperformance of the broader market.
But the company's overall score is held back in part by an EPS rating of 6 out of a best-possible 99. For its June 27-ended fiscal fourth quarter, Sandisk reported adjusted earnings of 29 cents per share, down 77% compared to a carved out Sandisk segment's results a year earlier, before the spinoff.
