What’s Going On With Sandisk Stock Tuesday? – SanDisk (NASDAQ:SNDK)
Sandisk Corporation SNDK shares jumped Tuesday as investor sentiment rallied around the company’s prospects in a strengthening NAND flash memory market.
The surge reflects growing optimism driven by rising demand from AI data centers and constrained supply conditions, which are expected to support higher pricing and improved margins for the data storage leader.
Bank of America Securities analyst Wamsi Mohan maintained a Buy rating on the stock, lifting his price forecast from $59 to $125.
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He highlights that the current NAND cycle, fueled by AI data-center demand, tight supply, and a ramp in enterprise SSD (eSSD) shipments, signals firmer pricing, margin expansion, and cloud revenue poised to surpass a $400 million quarterly run rate in early 2026.
Mohan cites several supply-demand tailwinds shaping the market. He notes stronger-than-expected data-center demand that is now meaningfully influencing pricing, rising NAND flash memory content in consumer devices, policy-driven restrictions on Chinese NAND output, and a near-term reluctance among suppliers to add capacity.
In Mohan’s view, these forces sustain an undersupplied NAND market and support firmer prices, while node migrations that lower cost per bit and a ramp in enterprise SSD (eSSD) shipments should push margins higher.
The analyst also expects hyperscale eSSD qualifications to conclude across the second and third quarters of 2026, positioning SanDisk to capture additional share in that end market.
Taken together, he sees a clearer path to improving profitability as pricing power strengthens and costs decline.
The analyst models sustained double-digit cloud end-market bit growth in calendar 2026 and 2027 and expects SanDisk to gain share.
He sees cloud bit pricing as the strongest across the firm’s end markets, with ASPs rising double digits in 2026 on tight supply and AI-driven demand.
The analyst projects cloud revenue to exceed a $400 million quarterly run rate in the first half of 2026. He models cloud at about 20% of total 2026 revenue, up from 13% in 2025.
This apart, Mohan expects Client and Consumer to benefit from tight supply and cost reductions, though less than Cloud.
He sees Consumer lifted by richer configs and higher memory in phones and PCs as they shift to edge-AI, with Consumer ASPs down 4% in 2026 and 9% in 2027.
For Client, he models ASPs roughly flat in 2026 and about 7% lower the following year.
Price Action: SNDK shares were trading higher by 6.51% to $109.63 at last check Tuesday.
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