Sandisk has gained more than 600% in 2026. It still has room to run, Rosenblatt says
The investment firm initiated coverage of the data storage manufacturer with a buy rating.
Rosenblatt has started coverage of Sandisk with a Buy rating, asserting that artificial intelligence is changing NAND flash memory from a commodity into a crucial component of computing infrastructure. Analyst Kevin Cassidy has set a $2,400 price target for Sandisk shares. This adjustment comes as AI compute platforms drive a shift in the perception of NAND from a basic storage medium to a more critical element of AI infrastructure.
As models grow in size and data-intensive inference becomes more prevalent, density, performance, endurance, and supply certainty now outweigh price as key factors. Cassidy highlighted Sandisk's 25-year roadmap, developed with manufacturing partner Kioxia, which supports this transformation. BiCS8 and BiCS10 platforms are expected to maintain a density advantage over competitors due to their use of fewer 3D layers.
Cassidy anticipates mid-to-high-teens revenue growth over fiscal years 2028 to 2030, coupled with a non-GAAP gross margin around 80% and a 50% adjusted free-cash-flow margin. He attributes improved demand visibility and reduced volatility in the sector to new business model agreements with eight of the largest NAND customers, potentially covering about 65% of fiscal 2028 production.
Based on these projections, Cassidy conservatively estimates fiscal 2030 non-GAAP earnings of approximately $300 per share. This price target is derived from a 10x multiple applied to his fiscal 2028 earnings estimate, considering the optimistic growth outlook, while acknowledging execution risks and the potential return of NAND to cyclical, commodity-like pricing.
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