BofA Sees 100% Upside in SanDisk on $94B Contract Backlog and AI Inference Shift
Summary
BofA analyst Wamsi Mohan reiterated a Buy rating and $2,500 price target on SanDisk, calling it a 'secular opportunity as AI inference makes NAND more indispensable.' The note highlights $93.9B in new business model agreements with eight data center and edge customers, backed by $16.5B in cash deposits, providing multi-year revenue visibility. Data center revenue doubled sequentially to $2.98B, now 38% of bits shipped, while consumer revenue fell 32% to $556M, signaling a structural shift away from cyclical PC/smartphone exposure. BofA forecasts fiscal 2027 EPS of $233.85 and $27.4B in free cash flow, arguing the stock at 5.8x those earnings is pricing in a collapse that long-term contracts may prevent. This follows yesterday's post-earnings selloff on a slight guidance miss, but the analyst sees the selloff as a misreading of SanDisk's transformed business model.
At the time of this announcement, SNDK was trading at $1,272.46 on NASDAQ in the Technology sector, with a market capitalization of approximately $188.4B. The 52-week trading range was $40.53 to $2,354.39. This news item was assessed with positive market sentiment and an importance score of 7 out of 10. Source: Benzinga.