Shares of SanDisk Corp. (SNDK.US) climbed nearly 8% on Tuesday, trading around $1,771.

This significant price movement follows recent, substantial upward revisions to the company's price targets by two major investment banks.

Bank of America raised its price target for SanDisk from $1,550 to $2,100, maintaining a "Buy" rating on the stock. The bank's positive outlook is underpinned by robust NAND demand, favorable pricing trends, and the support of a new wave of long-term supply agreements.

In a research note, Bank of America analyst Wamsi Mohan highlighted that SanDisk has already secured over one-third of its projected revenue for the 2027 fiscal year through these new business models. "This implies that the company still has more than 60% of its NAND supply available for customer procurement—even at prices higher than a year ago," Mohan wrote. "Over time, we believe SanDisk has the potential to bring a higher proportion of its supply under these new business models, driving more stable earnings performance."

Similarly, Mizuho also issued a bullish update, increasing its price target for SanDisk from $1,825 to $2,200 and reiterating an "Outperform" rating.

Analyst Vijay Rakesh from Mizuho pointed to several macroeconomic tailwinds fueling NAND demand. These include the consumption of enterprise solid-state drives being driven higher by AI workloads, and demand for context windows exceeding 2 million tokens, propelled by inference computing.