Rosenblatt sees growth potential for Sandisk shares thanks to AI — MarketWatch
Rosenblatt analyst Kevin Cassidy initiated coverage of Sandisk shares with a “buy” rating. He believes that the development of artificial intelligence systems could strengthen the role of NAND flash memory in AI infrastructure. The analyst’s price target is $2,400 per share, approximately 30% above Tuesday’s closing price of $1,887.04. That day, Sandisk shares rose by 6.8%.
NAND flash memory for AI systems
As MarketWatch reports, NAND flash memory has traditionally been a commodity product for data storage. It is non-volatile memory capable of retaining data without a constant power source.
Historically, demand for NAND in personal computers, smartphones, and other consumer electronics was driven by increases in data storage density and declining cost per bit. At the same time, large AI models and inference—the process during which models make predictions based on learned patterns—are increasingly shifting the priority toward density, performance, durability, and supply reliability rather than the lowest price, Cassidy believes.
Revenue forecast and customer agreements
According to the analyst, Sandisk’s technology roadmap, which includes the BiCS8 and BiCS10 architectures jointly developed with Japan’s Kioxia, could increase the value of NAND in AI systems. These architectures involve vertically stacking memory cells, making it possible to increase data storage capacity in a smaller area.
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Cassidy also believes that Sandisk’s NAND technology provides higher density at favorable costs. In his view, this should support the company’s performance and cost advantage in manufacturing storage systems for large-scale AI systems.
In fiscal year 2027, which began at the end of June, the analyst expects Sandisk’s data center revenue to reach $21.7 billion. In fiscal year 2028, he forecasts that it will increase to $28.6 billion.
Sandisk has also entered into multiyear agreements with eight major NAND customers. They allow clients to secure supply at specified prices amid a prolonged NAND shortage linked to AI demand. Cassidy believes that the agreements, which will cover a significant portion of Sandisk’s production capacity, could improve demand predictability and reduce the traditional cyclical volatility of the NAND market.
