AI Image
SanDisk Jumps 6% as Rosenblatt Starts Coverage at Buy With $2,400 Target; Micron Rises 3%, Seagate Ticks Up
24/7 Wall St. • • business
Key Points:
- Rosenblatt Securities initiated coverage of SanDisk with a Buy rating and set a price target of $2,400, highlighting NAND flash memory's evolving role as a critical component in AI infrastructure rather than a commodity.
- SanDisk shares surged 6% to $1,875, extending a 677% year-to-date gain, while related memory stocks like Micron and Seagate also saw moderate increases amid sector-specific optimism.
- The positive outlook is driven by SanDisk’s advanced BiCS8 and BiCS10 NAND platforms and new multi-year customer agreements covering an estimated 65% of fiscal 2028 production, potentially reducing the traditional NAND market's boom-bust cycle.
- Risks include execution challenges and the possibility that NAND pricing could revert to cyclical, commodity-like behavior, suggesting investors should remain cautious despite strong recent gains.
- The broader memory sector’s gains contrast with a flat S&P 500, indicating that the rally is driven by AI-related memory demand rather than a general market uptrend.
