SanDisk’s Analyst Day Just Strengthened Micron’s $1,550 Bull Case

SanDisk's 2026 Investor Day on August 13 highlighted its strong AI infrastructure story, including a $93.9 billion customer backlog and a new way to evaluate Micron Technology (NASDAQ:MU). Following the event, BofA reiterated its Buy rating on Micron with a $1,550 price target, arguing that the memory industry may be entering a more stable phase.

Historically, the memory business has been cyclical, with prices and margins driven by demand and supply, but SanDisk's recent event suggests a more durable phase for the industry. The company projects revenue growth of 10-15% from 2028 to 2030, driven by robust demand in AI infrastructure, with adjusted gross margins expected to remain around 80%.

SanDisk has also secured eight customers for New Business Model agreements, which provide multi-year supply deals with committed volumes and structured pricing. BofA anticipates Micron could generate $200-$250 in EPS by 2030 when using the SanDisk model, implying an EPS CAGR of over 30% between fiscal 2026 and 2030. The firm believes Micron's current memory chip shortage grants it significant pricing power and views the company's multi-year strategic agreements as improving its financial performance durability.

However, the bear case for Micron still exists, with concerns about the sustainability of high AI infrastructure spending and competition from South Korean and Chinese memory companies.