Sandisk Falls Despite BofA Target Hike

Sandisk NASDAQ:SNDK fell more than 8% Wednesday even after Bank of America raised its price target, as broader weakness in AI and memory stocks outweighed the bullish call.BofA lifted its Sandisk target to $2,500 from $2,100 and kept a Buy rating, citing a NAND supply-demand imbalance that could la…

Sandisk NASDAQ:SNDK fell more than 8% Wednesday even after Bank of America raised its price target, as broader weakness in AI and memory stocks outweighed the bullish call.

BofA lifted its Sandisk target to $2,500 from $2,100 and kept a Buy rating, citing a NAND supply-demand imbalance that could last through 2027. Analyst Wamsi Mohan said pricing should stay stronger for longer, though quarter-over-quarter gains may slow over time.

For the June quarter, BofA models NAND bit growth of 13% quarter over quarter and average selling price growth of 35%. The firm said Sandisk's actual pricing strength will depend on product mix and how many near-term fixed-price contracts are signed.

the split is important. BofA still sees strong fundamentals, but the stock's drop shows memory names remain vulnerable after a huge rally. The next thing to watch is whether Sandisk confirms strong NAND pricing in its next earnings update.