Key Takeaways
- Stronger-than-expected quarterly results from memory chip maker Micron Technology led Citi analysts to boost their price target for Sandisk Wednesday, saying it should benefit from the same AI-driven tailwinds.
- Data storage stocks like Sandisk have already seen strong gains in recent months as demand continues to outpace supply.
Demand for more memory capacity at artificial intelligence data centers and positive signals from Micron Technology’s quarterly results are fueling growing expectations for Sandisk’s stock.
Citi analysts boosted their price target for drive maker Sandisk (SNDK) by over 50% to $125 from $80 on Wednesday, citing “further-improving industry fundamentals” after memory chip maker Micron Technology (MU) posted record quarterly sales driven by gains from its data center business.
The analysts added they see better margins from Sandisk thanks in part to higher prices, after the company recently hiked prices for its flash memory products.
Why This Matters for Investors
Sandisk is representative of a cohort of data storage stocks that have seen their value soar in recent months as big tech firms pour billions of dollars into building the infrastructure to support their AI needs, and Wall Street analysts’ vote of confidence suggests the group could continue to benefit from growing demand.
Bank of America also lifted its target to $125 from $59 earlier this week, pointing to tightening market conditions as demand continues to outpace supply. Both analysts called the stock a “buy.”
Shares of Sandisk were down 7% at around $99 in recent trading amid broader tech sector declines, but they have nearly tripled in value since the stock was spun off in February from Western Digital (WDC), which has also seen big gains this year.
Data storage stocks like Western Digital and Seagate Technology (STX) are among some of the S&P 500’s top performers for 2025 so far, along with Micron Technology, as big tech companies ramp up spending to build out AI data centers.