SNDK
Sandisk’s not done flexing
Sandisk has already done the kind of stock performance that makes people double-check the decimal point: up 800% since January and 4,755% over the last year. That took it from a Western Digital spin-off to a $323 billion market cap, which is a pretty wild glow-up for a company best known for memory chips and flash storage.
BofA wants another lap
Now Bank of America analyst Wamsi Mohan is basically saying: don’t start the victory lap yet. He raised his price target from $1,550 to $2,100 and kept the Buy rating, pointing to a few ingredients investors love in a good stock story:
- a move toward multi-year contracts, which should smooth out the usual memory-chip roller coaster
- stronger pricing power as demand keeps climbing
- a beneficial joint venture partnership
- share gains and long-term industry consolidation potential
In other words, Sandisk is trying to turn a famously cyclical business into something a little more predictable. That’s the kind of makeover Wall Street loves almost as much as it loves a higher price target.
The catch: when everyone loves the same trade
Not everyone is going to cheer from the same balcony, though. The stock already trades at about 33 times forward earnings, which is richer than peers like Micron and Nvidia in this piece’s framing. And when memory prices rip higher, competitors tend to notice. If rivals ramp production, pricing can cool off fast — and that’s where the party music gets quieter.
The chart says “careful” in a whisper
There’s also a technical wrinkle: the article says Sandisk’s weekly chart shows bearish divergence, where the RSI is falling even as the stock keeps climbing. Translation: the stock may be running hot enough to need a breather, even if the fundamentals still look shiny.
Big picture: Sandisk has gone from overlooked spin-off to market darling, but now the real question is whether it can keep compounding gains without the usual memory-chip gravity pulling it back down.