SanDisk Stock Jumps as Citi Analyst Hikes Forecast, Says ‘Data Center NAND Bit Demand’ Is Through the Roof

SanDisk (SNDK) stock jumped 2.5% higher by market close on March 19, 2026. This happened after Citi © significantly raised its price target for the company yesterday. Analyst Asiya Merchant updated her forecast to $875, up from her previous target of $750, while keeping a Buy rating. The move follows strong results from other memory chip companies, which suggest the storage market is entering a period of extreme growth driven by artificial intelligence.

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AI Demand Drives Need for Data Center Storage

Asiya Merchant highlighted that the demand for the memory used in high-speed storage is growing faster than expected. In her report from yesterday, she noted that “data center NAND bit demand is accelerating on AI use cases.” This shift is very good for SanDisk because it makes the high-performance drives that these data centers need to run AI models. Merchant expects the industry’s total supply to grow by about 20% in 2026, but she believes that demand will stay much higher than what factories can actually produce.

Severe Supply Shortage Supports Favorable Pricing Environment

One of the main reasons for the higher price target is the expectation that memory chips will stay in short supply. Merchant wrote in her latest report that “demand significantly exceeds available supply.” Because there are not enough chips to go around, SanDisk has the power to keep its prices high. This helps the company’s profit margins grow. She also pointed out that while competitors are starting to build new factories, those won’t be ready until late 2028, which keeps the market tight for the next few years.

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SanDisk Successfully Manages a ‘Dynamic Environment’

Even with high demand, SanDisk is being careful about its growth. In her March 19 update, Merchant explained that the company is successfully managing a “dynamic environment” as it moves toward its long-term goals. Instead of just trying to sell as many chips as possible right now, SanDisk is working to secure long-term contracts. This focus on the future is a major reason why Citi believes the stock is a strong buy as the current “memory supercycle” continues.

Is SanDisk a Good Stock to Buy?

Wall Street currently maintains a Strong Buy consensus for SanDisk, with 12 analysts calling it a Buy and three rating it a Hold. Even so, the average 12-month SNDK price target sits at $696.67, which is about 10% lower than the current price. This gap suggests that many experts believe the stock is priced too high right now. This cautious view remains in place even though SanDisk is expected to see a massive jump in its profits very soon.

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