SNDK
New bull, same old flash? Not really.
Rosenblatt Securities kicked off coverage of Sandisk with a Buy and a $2,400 price target, basically telling the market: this isn’t your grandma’s NAND story. Analyst Kevin Cassidy says AI workloads are changing what buyers want from storage, and Sandisk could be one of the companies cashing in on that shift.
The AI angle is the whole game
The old flash playbook was pretty boring: cram in more density, cut costs, rinse, repeat. But AI inference changes the script. Cassidy argues that large models, longer context windows, and agentic workflows need storage that’s closer to compute and good at handling persistent data — which makes SSDs and NAND look a lot less like commodities and a lot more like infrastructure.
Sandisk’s own testing, according to the note, found SSD-based inference setups used about 75% less energy and delivered about 3x the throughput versus setups relying only on volatile memory. That’s the kind of stat that makes investors sit up a little straighter.
Contracts, margins, and a very large target
The bull case gets even more interesting because Sandisk has reportedly signed 10 supply agreements with eight datacenter and edge customers, with weighted-average duration above four years. Those deals reportedly include volume commitments, pricing guardrails, and financial guarantees — in other words, a little less “NAND roller coaster,” a little more “recurring-ish revenue vibes.”
Rosenblatt also thinks the datacenter business is exploding fast, with revenue rising from $960 million in fiscal 2025 to $5.15 billion in fiscal 2026. The firm is now modeling that segment at $21.7 billion in fiscal 2027 and $28.6 billion in fiscal 2028. If that plays out, Sandisk stops looking like a sleepy storage supplier and starts looking like a very different animal.
Big picture
For investors, the key question is whether Sandisk can keep turning AI storage demand into durable pricing power without NAND snapping back to its old commodity habit. Rosenblatt clearly thinks the answer is yes — or at least “yes enough” to slap a target way above the current price and call it a day.