BofA Securities Maintains Buy on Sandisk, $900 Price Target

BofA Securities analyst Wamsi Mohan reiterated a Buy rating and $900 price target on SanDisk (NASDAQ: SNDK).

“We hosted in-person investor meetings with Luis Visoso, EVP and CFO, and Ivan Donaldson and Jasmine Nouri from IR. While there were no updates to guidance, we walked away more confident in sustainability of NAND demand driven by very strong demand from hyperscalers and AI inference.

Given the asymmetric risk created by adding incremental capacity, Mgmt reiterated that the company has no plans to expand capacity beyond the already planned high teens supply growth for 2026/2027 and remains focused on driving a mix shift to cloud.

Mgmt. expects to take share in the eSSD (higher margin) segment as qualification of BiCS8 eSSDs translate to higher revs in 2H26 and beyond. Reit Buy on secular opportunity as AI inference makes NAND more indispensable. PO stays at $900 on 10x C27E EPS.

Initial investor reaction to media reports that Google’s TurboQuant compression methodology can reduce LLM memory usage was seen as negative for SNDK.

However, Mr. Visoso pointed out that this can improve ROI of hyperscale capex, and this increased efficiency could, in-turn, cause demand to rise (Jevons paradox).”

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