By Nate Wolf

Sandisk stock was back on the rise Monday after two Wall Street firms hiked their forecasts for the memory supplier.

Mizuho Securities reiterated an Outperform rating on Sandisk stock and lifted its price target to $2,200 from $1,825 in a research note Sunday. BofA Securities followed suit Monday, maintaining a Buy rating and raising its price target to $2,100 from $1,550.

Sandisk stock jumped 5% to $1,638 on Monday, recovering partly from an 11% drop on Friday. Shares had risen 557% in 2026 and some 3,600% over the last 12 months as of Friday's close of trading.

Artificial intelligence has spurred historic demand for memory while supply remains tight, resulting in skyrocketing prices and wider margins. The question for investors is when supply may catch up to demand and bring price growth back down to earth. Mizuho's answer: Not soon.

"We continue to see AI as the driving force behind the supply demand imbalance in the memory market," wrote Mizuho analyst Vijay Rakesh. "Increasing demand in 2027/28E could add further pressure to the market."

Mizuho estimated that starts for NAND flash wafers -- the building-blocks of Sandisk's products -- will decline in 2026 and rise slightly in 2027, with "no significant supply online" until 2028. Demand, however, will continue to grow at an 18% annual clip this year and next.

Pricing should continue to be strong, argued BofA analyst Wamsi Mohan. Sandisk is increasingly signing multiyear agreements with customers with fixed pricing for a strating period and then variable pricing through the rest of the deal. Over one-third of Sandisk's estimated fiscal 2027 revenue is from these so-called new business models, or NBMs.

"The contracts are designed so that margins remain within guidance range, even if pricing is at the floor," Mohan wrote. " Over time we see a path to a higher proportion of supply under these NBMs thereby driving more stability in earnings."

Other memory and data-storage names also moved higher Monday. Memory chip maker Micron Technology was up 8%. Hard-drive suppliers Western Digital and Seagate Technology rose 4% and 3.3%, respectively.

Write to Nate Wolf at nate.wolf@barrons.com

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June 08, 2026 09:52 ET (13:52 GMT)

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