By Kit Norton
SanDisk has gained nearly 300% this year, lifted by the expectation that the boom in construction of artificial-intelligence data centers will drive up memory demand. Analysts at Evercore ISI think shares still have 180% upside as the company moves beyond being a cyclical memory name into a "structural AI beneficiary."
Evercore, led by Amit Daryanani, initiated coverage of SanDisk with an Outperform rating and a $1,200 price target, adding that the firm sees a "bull case" of $2,600 a share.
SanDisk shares dropped 4.4% to $910.30 on Tuesday. The stock was poised to retreat after notching a 12% gain to $952.50 Monday after Nasdaq said late Friday the flash memory product supplier would join the Nasdaq 100 before the market opens on April 20, replacing software company Atlassian.
Entering Tuesday's trading session, Sandisk had risen 301% this year and soared 2,879% gain over the past 12 months.
SanDisk stock would have to rise another 30% to hit Daryanani's $1,200 price target. Under the firm's bull case, SanDisk would rise around 180% compared to how shares were trading Tuesday.
Evercore's bullish view on SanDisk came after Mizuho analysts on Friday raised their SanDisk price target to $1,000, up from $710, representing about 9% upside currently.
The Evercore analysts wrote that SanDisk is "levered to one of the most attractive areas of the AI infrastructure stack," namely data storage, where demand is accelerating and supply remains constrained "at minimum" through calendar 2028, if not beyond.
"We think the current cycle is structurally tighter and more durable, underpinned by AI-driven demand and sustained supply discipline," the analysts wrote.
This should provide memory providers with pricing floors and upfront cash payments, according to the firm.
"Despite strong stock performance, we see further upside driven by earnings revisions, mix shift toward enterprise SSD, and multiple re-rating," Daryanani wrote.
Memory stocks, including SanDisk and Micron Technology, have been strong performers this year as AI and data centers have drive up memory demand.
"We view SNDK as transitioning from a cyclical memory name to a structural AI beneficiary, with a favorable risk/reward," the Evercore analysts added.
Write to Kit Norton at kit.norton@barrons.com
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April 14, 2026 10:15 ET (14:15 GMT)
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