Goldman Sachs raised its target price for SanDisk (NAS:SNDK) stocks from $1,200 to $2,200 on the 12th (local time), citing structural improvements in the NAND flash memory market. The investment bank maintained its 'Buy' rating while doubling its earnings per share (EPS) forecast for the year from $55 to $110. The new target price represents approximately 14.8% upside potential from the closing price of $1,915.92 on the 10th. Goldman Sachs attributed the upgrade to ongoing NAND supply shortages that are expected to drive strong financial performance. According to The Street, the firm emphasized that the revision reflects fundamental improvements in profit-generating capabilities rather than simple valuation expansion.
Goldman Sachs Doubles EPS Forecast to $110
Goldman Sachs increased its expected EPS for SanDisk from $55 to $110 for the year. The firm stated it anticipates very strong performance as NAND supply shortages persist. Goldman Sachs noted that the NAND flash supply shortage is expected to last longer than the DRAM shortage.
![SanDisk stock price chart [Source: Yonhap News photo provision]]()
SanDisk Expands Enterprise SSD Supply to Hyperscalers
Goldman Sachs highlighted SanDisk's expansion of enterprise solid-state drive (eSSD) supply to major hyperscaler customers. The firm evaluated positively the limited supply expansion across the industry. Goldman Sachs analyzed that more than one-third of fiscal 2027 production volume has already been secured through long-term supply contracts.
Earnings Announcement Scheduled for the 5th of Next Month
The market views the earnings announcement scheduled for the 5th of next month as a potential turning point for further stock appreciation. Goldman Sachs noted that Micron recently announced expansion of long-term supply contracts. The firm projected that if SanDisk discloses the scale of new long-term contracts and NAND price outlook, it could trigger a stock revaluation.
Goldman Sachs Identifies Risks from Price Normalization and YMTC Competition
Goldman Sachs identified potential risk factors for SanDisk. The firm stated that faster-than-expected termination of NAND price structure improvements could pose risks. Goldman Sachs added that faster-than-anticipated increases in technological competitiveness from China's YMTC could also present downside risks.
FAQ
Why did Goldman Sachs raise SanDisk's target price to $2,200?
Goldman Sachs raised SanDisk's target price from $1,200 to $2,200 on the 12th (local time) due to structural improvements in the NAND flash memory market and ongoing supply shortages. The firm doubled its EPS forecast from $55 to $110, citing fundamental improvements in profit-generating capabilities rather than simple valuation expansion.
What portion of SanDisk's fiscal 2027 production is secured through long-term contracts?
According to Goldman Sachs' analysis, more than one-third of SanDisk's fiscal 2027 production volume has already been secured through long-term supply contracts. The firm highlighted SanDisk's expansion of enterprise SSD supply to major hyperscaler customers as a positive factor supporting the target price upgrade.
