SanDisk (NASDAQ:SNDK) received a fresh bullish call from Rosenblatt, which initiated coverage of the memory-chip maker with a Buy rating and a $2,400 price target.
The stock gained 4% after the market opened on Tuesday.
The target represents an upside of over 35% from SanDisk’s recent trading levels of $1,766.64, and comes after the stock has already gained more than 540% in 2026 and more than 1,600% over the past year.
Rosenblatt’s central argument is that artificial intelligence could fundamentally change the role of NAND flash memory.
Rather than remaining primarily a commodity storage product, NAND could become a more strategically important component of AI computing infrastructure as models grow larger and inference workloads become increasingly data intensive.
“Historically, consumer, PC, and smartphone NAND demand was driven primarily by rising density and falling cost per bit. In AI systems, however, expanding model sizes and data-intensive inference increasingly prioritise density, performance, endurance, and supply certainty over the lowest absolute price,” Rosenblatt’s Kevin Cassidy said.
“We believe positioning NAND closer to compute engines can increase its value to the overall system. SanDisk’s technology roadmap supports this opportunity,” the analyst’s note said.
SanDisk tech roadmap strengthens AI case
Rosenblatt highlighted SanDisk’s BiCS8 and BiCS10 platforms, which improve areal density and lateral scaling while enabling comparable die capacity with fewer 3D layers than certain competing approaches.
The company has also developed NAND process technology for roughly 25 years alongside technology and manufacturing partner Kioxia, giving it a long-established position in the memory industry.
SanDisk has increasingly positioned itself around AI-related memory applications, including its High Bandwidth Flash technology, which the company has described as an opportunity tied to the growth of AI inference.
Crucially, NAND flash memory prices are expected to climb even more sharply in the near term, with Susquehanna analyst Mehdi Hosseini forecasting a 60% sequential increase this quarter and a further 25% rise in the following quarter.
Earnings validate investment case
SanDisk’s recent earnings cemented its place in the AI trade.
Datacenter revenue rose from $325 million in fiscal 2024 to $960 million in fiscal 2025 and $5.2 billion in fiscal 2026, representing 437% growth in the latest fiscal year.
Total fiscal 2026 revenue reached $20.3 billion, up 175% year over year.
For the fiscal fourth quarter ended July 3, revenue reached $9 billion, up 372% from a year earlier and 51% sequentially.
Diluted GAAP earnings per share came in at $43.97, compared with a loss of $0.16 in the year-earlier quarter and up 91% from the previous quarter.
Long-term margin targets underpin $2,400 case
Rosenblatt’s valuation also rests on SanDisk’s ambitious long-term financial framework.
Management expects mid-to-high-teens revenue growth between fiscal 2028 and fiscal 2030, alongside approximately 80% non-GAAP gross margins, 75% non-GAAP operating margins and a 50% adjusted free-cash-flow margin.
SanDisk’s fiscal 2026 gross margin was 71.5%, showing how far profitability has already moved from the previous year’s 30.1%.
Management’s confidence is partly linked to New Business Model agreements signed with eight major NAND customers.
The agreements represent approximately two-thirds of bits in fiscal 2028, according to SanDisk.
Rosenblatt conservatively estimates fiscal 2030 non-GAAP EPS at approximately $300 per share based on the company’s framework.
Other analysts have also assigned elevated targets.
Goldman Sachs has a $2,200 target and Buy rating, while Mizuho has maintained an Outperform rating and a $1,900 target.
RBC Capital recently raised its target to $1,600 while retaining a Sector Perform rating.
S&P 100 inclusion adds another near-term catalyst
SanDisk’s momentum also received a boost from its addition to the S&P 100, effective September 21.
S&P Dow Jones Indices confirmed SanDisk as one of the additions during the latest quarterly index rebalance.
The inclusion could generate incremental demand as funds and exchange-traded products that track the index adjust their holdings.
It may also increase SanDisk’s visibility among institutional investors.
However, index membership is likely to be a secondary factor over a longer period.
The company’s ability to sustain datacenter growth, pricing, margins and cash generation will remain more important to the stock’s fundamental valuation.
CEO stock sales add a note of caution
The bullish analyst outlook comes against the backdrop of substantial insider selling.
SanDisk Chairman and CEO David Goeckeler sold 33,841 shares for approximately $53.3 million on September 17, according to an SEC Form 4 filing.
The shares were sold at prices ranging from $1,567 to $1,587, and the transactions were conducted under a Rule 10b5-1 trading plan adopted on May 29. Goeckeler beneficially owns 382,865 shares following the transactions.
He also sold about $51.7 million of shares on September 14 under the same plan.
The sales may look negative at first glance, particularly after SanDisk’s extraordinary share-price appreciation.
But the pre-arranged nature of the transactions makes them less straightforward to interpret as a judgment by management about the company’s future prospects.
With the stock up more than 1,600% over the past year, the transactions could also represent profit-taking following a dramatic increase in the value of Goeckeler’s holdings.
For investors, the more consequential question is whether SanDisk can turn the current AI-driven NAND boom into the durable growth and margins embedded in management’s fiscal 2028-2030 framework — and ultimately justify increasingly ambitious Wall Street targets such as Rosenblatt’s $2,400 valuation.
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