Sandisk Jumps 6.2% as Evercore Backs $2,800 Target on Tripled NAND Prices
Updated
Updated · Yahoo Finance · Aug 13
Sandisk Jumps 6.2% as Evercore Backs $2,800 Target on Tripled NAND Prices
3 articles · Updated · Yahoo Finance · Aug 13
Summary
Sandisk shares rose 6.2% by 10:50 a.m. ET, extending a four-day rally after Evercore ISI reiterated an outperform rating ahead of the company’s Investor Day update.
Evercore analyst Amit Daryanani said NAND prices have more than tripled over the past year, supporting forecasts for 80% gross margins at the cycle peak and 65% to 70% afterward.
$35 billion in annual free cash flow during the early part of the cycle could fund buybacks of at least 10% of shares a year from 2027, with Sandisk’s $180 billion market value implying capacity for nearly 20%.
The bullish call builds on Sandisk’s Investor Day, where it outlined new BiCS9 and BiCS10 QLC NAND products, a plan to return 100% of excess cash to shareholders, and AI-driven demand growth through 2030.
SanDisk promises 80% margins, but what happens to this historic windfall if next-generation AI architectures suddenly eliminate the need for massive data caching?
Could SanDisk's massive long-term AI storage agreements become a costly trap for hyperscalers if global NAND supply floods the market in 2027?
As AI inference exposes severe caching bottlenecks, will SanDisk's experimental High Bandwidth Flash quietly dethrone HBM as the industry's most critical component?