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SanDisk Shares Pull Back as Citi Lifts Target to $875 on Tight NAND Outlook

AI storage buildouts are driving multi-year deals with accelerating data-center revenue.

Overview

  • SanDisk fell roughly 5–8% on Friday, dipping below $740 after a steep year-to-date and 12‑month surge, with profit-taking and sector supply concerns cited.
  • Citi’s Asiya Merchant raised her SNDK price target to $875 from $750 and reaffirmed a Buy rating.
  • Micron’s latest results highlighted aggressive capex plans and stated NAND demand should exceed supply for the foreseeable future, influencing memory-sector sentiment.
  • SanDisk reported Q4 revenue of $3.025 billion, up 61% year over year, with data-center revenue rising 64% sequentially on hyperscaler SSD qualifications converting to sales.
  • Management is locking in supply with more than $1 billion in long-term fab commitments through 2030–2035 and is moving to one‑to‑five‑year customer contracts, with one agreement already signed.