Bank of America resets Sandisk stock price target
Sandisk has already delivered one of the most extraordinary stock rallies in the technology sector this year, up more than 550% in 2026 before last week's pullback.
The memory company fell more than 15% over two sessions as the broader AI trade sold off on Broadcom earnings and profit-taking. Bank of America used the dip to make its call louder, not quieter.
Analyst Wamsi Mohan, ranked #151 out of 10,081 Wall Street analysts on TipRanks with a 65% success rate, raised his price target on Sandisk (SNDK) to $2,100 from $1,550 on June 8. He maintained his Buy rating and argued the company's run has significantly more room to go, according to CNBC.
Wamsi Mohan's view on Sandisk performance
The upgrade followed Sandisk investor relations representatives attending Bank of America's 2026 Global Technology Conference in San Francisco. The company offered no guidance update, but the discussions centered on Sandisk's multi-year supply partnerships with customers, which the company refers to internally as New Business Models, or NBMs, according to Investing.com.
Mohan described the NBM structure as a "win-win" arrangement. The contracts feature fixed pricing for an initial period followed by variable pricing, structured so that Sandisk's margins remain within guidance range even if pricing hits the floor.
Related: Veteran analyst shares blunt message on Sandisk stock after rally
Five NBM deals have been signed so far, covering over $42 billion in committed revenue, more than $11 billion in guarantees, and $400 million in prepayments, according to TipRanks.
More than one-third of Sandisk's fiscal 2027 revenue is already locked in through these agreements. Mohan raised his FY2027 revenue estimate to $44 billion from $37.7 billion and his FY2027 EPS estimate to $187.65 from $153.59.
The revised $2,100 price target is based on an unchanged roughly 10x multiple on calendar 2027 EPS of $199. At Friday's closing price of $1,559.32, the new target implies approximately 34.7% upside, according to CNBC.
Why Bank of America is optimistic about NAND supply
The central argument in Mohan's note is that the current memory market cycle differs structurally from previous ones. Historically, strong NAND pricing has encouraged aggressive capacity expansion that eventually created oversupply and crashed margins.
Mohan argues that dynamic is less likely to repeat this time for two reasons.
First, supply remains genuinely constrained. NAND wafer starts are declining approximately 5% in fiscal 2026, and no significant new supply is expected until 2028, according to Investing.com. Demand from AI data centers, enterprise storage, and cloud infrastructure is accelerating faster than production can respond.
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Second, Sandisk has built production flexibility that did not exist in past cycles. Mohan noted the company can now cut wafer starts if demand slows rather than continuing to produce chips simply to generate cash flow. That optionality changes the downside risk profile considerably.
NAND pricing is expected to continue rising through 2026 and remain strong into the first half of 2027, according to TipRanks. Free cash flow is projected to reach $27.5 billion in fiscal 2027 and $34.3 billion in fiscal 2028 on Mohan's revised estimates, transforming Sandisk into what one analyst described as a high-margin compounder.
Key takeaways from BofA's new Sandisk target
- Mohan's most profitable rating on TipRanks is his Buy on SNDK placed September 23, 2025, which has returned +800% as of June 2026; that single rating has made the Sandisk call one of the best-performing analyst recommendations on Wall Street over any 12-month window this year, according to TipRanks
- Cantor Fitzgerald raised its Sandisk price target to $2,900 from $1,800 on the same day as the Bank of America upgrade, making it the most bullish major firm on the stock; according to TipRanks, the dual upgrade day underscores broad conviction that the pullback created a buying opportunity rather than signaling a trend reversal
- Sandisk's Kioxia joint venture is cited by Mohan as a structural advantage; the partnership gives Sandisk scale and manufacturing efficiency that pure-play NAND producers without JV arrangements cannot easily replicate, while also positioning the company favorably for potential industry consolidation, TipRanks confirmed
- The Wall Street consensus on Sandisk is Strong Buy based on 14 Buy ratings and two Hold ratings; the average price target of $1,843.44 still implies 18.2% upside from Friday's close even before the June 8 upgrades are fully incorporated, according to TipRanks
- Bank of America's long-term bull thesis on Sandisk includes four pillars beyond the NBM contracts: valuation, the beneficial Kioxia JV partnership, share gains in enterprise SSD, and long-term potential for memory industry consolidation that could reduce competitive intensity further, according to Investing.com
What the BofA Sandisk upgrade means for SNDK investors
The $2,100 price target implies 34.7% upside from where Sandisk closed last Friday and arrives immediately after a 15% pullback. For investors who had been watching Sandisk's extraordinary run from the sidelines, Mohan's note makes an explicit case that the dip created an entry point.
The most important element of the thesis for long-term investors is not the near-term pricing argument. It is the structural change in Sandisk's revenue model that the NBMs represent.
A company that has locked in $42 billion in committed revenue across five multi-year deals is a different investment than the highly cyclical NAND producer the market valued at a fraction of today's price a year ago. If those contracts hold and new ones are added, the earnings visibility that investors pay premium multiples for becomes a Sandisk characteristic rather than an exception.
The risk to the thesis remains supply. If NAND wafer starts from Sandisk's competitors ramp faster than Mohan expects before 2028, the pricing power underpinning both the NBM floor pricing and the spot market premium could erode faster than his FY2027 estimates assume.
For now, Bank of America's answer is that the supply constraint is real, the NBM structure provides downside protection either way, and the free cash flow trajectory makes the current multiple defensible.
Related: Barclays resets SanDisk stock price target after earnings
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This story was originally published June 8, 2026 at 8:07 PM.