Sandisk May Have Broken Memory's Boom-Bust Cycle

JPMorgan analyst Harlan Sur moved Sandisk to an Overweight rating from Not Rated following the company’s 2026 Investor Day. He set a December 2027 price forecast of $2,250, implying about 47% upside from Sandisk’s Aug. 13 closing price of $1,528.11.

JPMorgan expects the NAND flash market to expand dramatically as AI inference creates new storage requirements. The firm estimates the market will grow from about $70 billion in 2025 to more than $300 billion in 2026. Sandisk expects the market to approach $500 billion in 2027. Data centers are expected to account for about half of the market in 2026, up from roughly 30% in 2025. AI inference is particularly storage-intensive. Larger models, longer context windows and agentic AI applications require data to be stored and retrieved quickly.