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Sandisk upgraded to buy on strong AI-driven data center NAND demand and premium SSD growth potential.

Analyst Insights
21 May 2026
Seeking Alpha
View Source
Bullish
pluang ai news

Sandisk has been upgraded to a buy rating due to strong demand for NAND memory driven by AI data center expansion and its differentiated, value-added products. The company's Stargate brand and partnership with SK hynix position it well for premium margins as enterprise SSDs become essential for AI infrastructure. The price target for fiscal year 2027 is set at $3,000, implying a 128% upside supported by expected 183% EPS growth, 77% EBITDA margins, and robust share buyback plans. Risks include potential delays in data center build-outs, supply chain issues, and demand shocks after 2028, but Sandisk remains undervalued at under 7 times FY2027 price-to-earnings ratio.

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