Bank of America lifts SanDisk target to $2,100 as NAND supply deals promise steadier earnings

Bank of America lifted its price target on SanDisk to $2,100 from $1,550 on Monday, June 8, reiterating a Buy rating as the bank cited strong NAND flash demand and what it described as better earnings visibility from newly signed, multi-year customer supply agreements. The update, attributed to Bank of America Securities analyst Wamsi Mohan, came as SanDisk’s investor relations team discussed the company’s strategy with the bank during the firm’s 2026 Global Technology Conference in San Francisco, according to ’s report on the note.

SanDisk’s “new business model” agreements are structured as supply commitments designed to smooth what is typically a cyclical memory market. As described in the analyst write-up, the contracts include an initial period with fixed pricing, followed by variable pricing later in the term. Bank of America said the deals are designed so SanDisk’s margins remain within its guidance range even if pricing falls to its minimum level, a framing the bank called “win-win” for both suppliers and customers.

The bank’s confidence also rests on the scale of those agreements. reported that, as of the note, SanDisk had signed five of these NBMs, with financial guarantees totaling more than $11 billion and $400 million in prepayments overseen by third-party financial institutions. The report also said more than one-third of SanDisk’s fiscal 2027 revenue was already tied to NBMs at that point, leaving the bank viewing the company’s near-term outlook as more contract-backed than in prior cycles.

Alongside the target increase, Bank of America raised its fiscal 2027 estimates. The report said BofA increased its fiscal 2027 revenue estimate to $44 billion and its fiscal 2027 EPS estimate to $188, up from $37.7 billion revenue and $154 EPS previously. Bank of America also pointed to a supply outlook in which it does not expect meaningful incremental new NAND supply to arrive until 2028 or 2029, supporting a backdrop of firmer pricing.

SanDisk has been positioning these agreements as a business model shift rather than just a tactical procurement arrangement. In its fiscal third-quarter results released April 30, 2026, SanDisk reported revenue of $5.95 billion, up 97% sequentially, and said the quarter marked an “inflection point” as it shifted mix toward higher-value end markets, led by the datacenter segment. The company also said it ended the quarter with three signed NBMs and had signed two additional NBMs during the fiscal fourth quarter.

In the same earnings materials, SanDisk characterized the new model as multi-year customer engagements backed by firm financial commitments. It tied the change to “structurally higher and more durable earnings power,” and it reiterated a high-margin earnings profile for the quarter, including gross margin of 78.4%. For fiscal fourth quarter 2026, the company set revenue expectations of $7.75 billion to $8.25 billion and non-GAAP diluted EPS guidance of $30.00 to $33.00.

For context, NAND flash is a core input for enterprise solid-state drives (SSDs) and for data-center storage systems used to run artificial intelligence workloads. When NAND supply is tight and pricing firms, suppliers can generate unusually strong cash flow. But memory cycles can reverse quickly if supply expands, which is why analysts pay close attention to whether customers lock in multi-year output and whether suppliers can manage production more deliberately instead of chasing short-term demand.

Still, some details remain unclear from public disclosures around the analyst note. Bank of America’s reported discussion did not indicate the identities of specific counterparties or provide contract-by-contract terms, and also said SanDisk did not offer updates to its earnings guidance during the conversation. Investors will therefore have to track how these NBMs translate into realized pricing, margins, and contract coverage as more agreements are added and as the industry’s supply ramps.

Looking ahead, the key question is whether SanDisk’s multi-year agreements keep pace with demand during the period when Bank of America expects limited incremental NAND supply through 2029. Market participants will also watch for further expansion of NBMs and whether the pricing floor embedded in these contracts continues to hold in practice, especially as competitors adjust their capacity plans.