Sandisk is optimistic that NAND will be in short supply until the end of next year, the quotation rises and the stock price surges

Sandisk, the leading provider of computer storage equipment in the United States, received bullish calls from analysts after announcing excellent financial forecasts, and its stock price soared on the 7th.

Seeking Alpha reported that Bank of America (BofA) set Sandisk's investment rating as "buy" on the 7th with a target price of $270.

The Bank of America analyst team led by Wamsi Mohan pointed out that Sandisk's first quarter (July-September) financial report and this quarter's outlook both beat Wall Street estimates. Executives mentioned that NAND flash memory demand continues to exceed supply, and the shortage is predicted to continue until the end of 2026.

The report also stated that Sandisk executives revealed that customers are beginning to seek to sign delivery and pricing contracts that span several quarters. This increases operational visibility until 2027 and also highlights the demand for NAND.

Mizuho Securities' analyst team led by Vijay Rakesh also reiterated Sandisk's investment rating as "outperform the market" and revised the target price up from US$215 to US$250.

The Rakesh report pointed out that SanDisk's revenue from July to September reached US$2.31 billion (better than Wall Street's expectation of US$2.15 billion); revenue from October to December is expected to increase by 13% quarterly to US$2.6 billion (better than the expected US$2.23 billion), and gross profit margin is also expected to increase by 12.1 percentage points quarterly to 42% (better than the expected 34%), mainly due to accelerated demand for AI servers that push up quotations.