Bank of America has expressed renewed optimism about Sandisk’s future, maintaining its “buy” rating on the flash memory manufacturer while raising its price target to $230 per share from $125.
The revised forecast implies an 18% upside from the company’s last closing price on Tuesday, signaling continued confidence in Sandisk’s growth trajectory despite its already remarkable rally this year.
Since being spun off from Western Digital on February 24 and listing on the Nasdaq at $36 per share, Sandisk’s stock has surged by 440%.
Despite this explosive performance, Bank of America analyst Wamsi Mohan believes the company’s valuation remains reasonable given its strong fundamentals and favorable market dynamics.
Sandisk stock gained 7.61% to $209.37 on Wednesday.
Valuation seen as fair despite massive rally
In his research note, Mohan argued that Sandisk’s valuation continues to look justified, even after its steep appreciation.
He expects the company’s price-to-book (P/B) multiple to “rerate from 0.8x–2x to 3x–4x for the next few years,” supported by accelerating revenue growth and record profitability.
“We believe SNDK shares will rerate to at least 3–4x book value given a very strong memory cycle,” Mohan wrote.
The analyst emphasized that a combination of robust demand, favorable pricing trends, and technological advances in solid-state drive (SSD) production is setting the stage for sustained performance in the years ahead.
Sandisk’s post-spinoff momentum reflects investors’ growing confidence in the company’s independent direction and focus on high-performance memory solutions.
The strong fundamentals, coupled with a favorable industry cycle, are helping drive both market enthusiasm and analyst upgrades.
Data center demand driving up prices
One of the key drivers behind Bank of America’s bullish outlook is the surging demand from data centers, which Mohan said is coming in higher than previously anticipated.
This demand is now beginning to “meaningfully impact pricing,” strengthening Sandisk’s position within the global memory market.
At the same time, a medium-term undersupply of hard disk drives (HDDs) is contributing to increased demand for advanced solid-state drives (SSDs).
As traditional HDD availability tightens, customers are turning toward enhanced SSDs for greater efficiency, speed, and scalability, areas where Sandisk is positioned to capitalize.
Mohan also pointed to growing confidence in Sandisk’s ability to expand its presence in the enhanced SSD market, citing improvements in production and innovation.
The company’s continued progress in this segment could allow it to capture a larger share of the enterprise and cloud storage markets over the next several years.
BiCS8-based SSDs expected to boost long-term growth
Looking ahead, Bank of America expects Sandisk to maintain sustained double-digit bit growth in its cloud end-market over the next two years (2026–2027).
Mohan forecasts near-term revenue, gross margin, and EPS beats, driven by favorable NAND pricing trends and strong market demand.
However, he anticipates larger earnings improvements after the second half of 2026, once BiCS8-based enhanced solid-state drives (eSSDs) begin contributing meaningfully to market share and profitability.
“Given the near-term NAND pricing trends, we do expect meaningful near-term beats in revenue, gross margins, and EPS, but expect larger magnitude changes after 2H2026 when BiCS8-based eSSDs start to take share for SNDK,” Mohan wrote.
With its expanding product portfolio and exposure to the growing cloud and data storage sectors, Sandisk appears well-positioned to continue its upward trajectory.
Bank of America’s latest upgrade underscores the market’s confidence that the company’s transformation into a high-growth, innovation-driven memory leader is far from over.
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