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• JPMorgan initiated coverage with an ‘Overweight’ rating and a $2,250 price target.
• It said SanDisk is “uniquely positioned” to benefit from rising NAND demand tied to AI inference.
• Morgan Stanley was more cautious on whether the improvement is structural, but said near-term conditions are strengthening.

Shares of SanDisk (SNDK) were on track to hit a five-day winning streak in pre-market trade on Friday after the company announced new financial targets for the next three years, and Wall Street seems to be on board with the plan. 

In a note to investors cited by TheFly, JPMorgan said SanDisk’s plan has “structurally reset” its margin profile. Meanwhile, Morgan Stanley called its capital-allocation strategy to continue to moderate investors and return 100% of free cash flow to investors a “substantial positive.” 

SNDK stock rose more than 6% in pre-market trading and was among the top-trending tickers on Stocktwits at the time of writing. The shares were on track for a fifth consecutive day of gains and had jumped more than 23% so far this week.

Wall Street Sees A New Era For NAND Demand

JPMorgan analyst Harlan Sur initiated coverage of SanDisk with an ‘Overweight’ rating and a $2,250 price target after a period of restriction. The firm previously rated the stock ‘Neutral’.

Sur said SanDisk is “uniquely positioned” to benefit from a “structural inflection” in NAND demand, driven in part by the “rapid growth” of AI inference. JPMorgan’s price target implies a potential upside of over 47% for SNDK shares from Thursday’s closing price of around $1,528. 

Morgan Stanley also pointed to the company's investor day presentation, noting that SanDisk sees the NAND industry entering a new era of long-term demand growth tied to AI. The firm said SanDisk believes its technology and product portfolio is “continuing to lead the industry.” 

However, Morgan Stanley was somewhat more cautious on the durability of the improvement, saying it isn't “completely in agreement with management's view that improvements are more structural than cyclical.”

The firm has an ‘Overweight’ rating on SNDK stock and a $1,750 price target, implying a potential upside of around 15% from Thursday’s close.

Capital Allocation Becomes Key Focus

JPMorgan said the new business model framework has “structurally reset” SanDisk's margin profile higher and “materially reduced cyclicality,” while Morgan Stanley said the “most important management decision will be capital allocation” going forward. 

At its 2026 Investor Day, SanDisk said it expects revenue to grow in the mid-to-high teens over the next three years, supported by rising demand for AI and data center memory.

It said long-term agreements with eight customers have made revenue and cash flow more predictable, adding that the agreements cover about half of the company’s expected memory sales next year and nearly two-thirds the following year.

SanDisk CFO Luis Visoso stated the company plans to return 100% of excess cash to shareholders after investing in the business. 

SNDK stock has gained over 500% this year and more than 3,000% in the last 12 months.

Read also: Chamath Palihapitiya Sees Palantir As A Potential Winner In 3-Year Shift To Model-Agnostic AI

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