SanDisk (SNDK) Stock Falls as BofA Raises Target to $2,500 on NAND Demand

TLDR

• SanDisk stock fell 9.44% on Tuesday despite a bullish price target upgrade from Bank of America
• BofA raised its SNDK target from $2,100 to $2,500, maintaining a Buy rating
• Analyst Wamsi Mohan expects average selling prices to rise up to 35%, with bit growth up 13% quarter-over-quarter
• SNDK is up 800% year-to-date and 4,755% over the past 12 months, now a $323 billion company
• Risks include a forward P/E of 33 — higher than Nvidia and Micron — and bearish technical signals

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SanDisk stock fell sharply on Tuesday, dropping 9.44% in the session. That drop came on the same day Bank of America raised its price target on the stock from $2,100 to $2,500.

Sandisk Corporation, SNDK

BofA analyst Wamsi Mohan kept his Buy rating in place. His upgrade was driven by the current imbalance between NAND supply and demand, which he believes could stretch into 2027.

Mohan expects SanDisk’s average selling prices to climb by as much as 35%. He also sees bit growth — the total amount of memory shipped — rising 13% quarter-over-quarter.

Based on those expectations, BofA now forecasts SanDisk’s June-quarter revenue at $9.1 billion with EPS of $37.01. Wall Street’s current consensus sits lower, at $8.35 billion in revenue and $34.26 EPS.

Looking further out, BofA projects $11.5 billion in revenue and EPS of $48.55 for the following quarter.

Long-Term NAND Agreements Add Revenue Visibility

A key part of Mohan’s bullish case is SanDisk’s push into long-term NAND supply contracts, known as NBMs. These deals lock in multi-year revenue and make future earnings easier to model for investors.

BofA expects cloud and enterprise customers to broadly adopt these contracts over time. The firm also noted that the agreements are structured to keep gross margins within SanDisk’s target range.

That shift in strategy is what helped drive SanDisk’s remarkable run. The stock is up 800% year-to-date and 4,755% over the past 12 months. That turned a Western Digital spin-off into a $323 billion company.

Other analysts are also bullish. Mizuho raised its target from $1,825 to $2,200. Cantor Fitzgerald went to $2,900. Susquehanna is the most optimistic, with a $3,250 target.

The Wall Street consensus is Strong Buy — 14 Buys, two Holds, and zero Sells over the past three months. The average price target sits at $1,979.38, implying roughly 3% downside from current levels.

Risks Are Stacking Up

Despite the analyst support, the stock is not without risks — and Tuesday’s sell-off is a reminder of that.

SanDisk’s forward P/E has climbed to 33, above Nvidia at 22 and Micron at 18. That valuation gap is drawing attention.

There’s also the supply risk. Higher memory prices could push competitors like Micron, Kingston, and Kioxia to ramp production, which would eventually push prices back down.

On the technical side, the weekly chart shows a bearish RSI divergence. The RSI has been falling while the stock price has risen — a pattern that often leads to a pullback.

The stock is also trading at $2,238, well above its 50-day moving average of $1,458.