Melius Research Sets Bullish $1,350 Target for Sandisk Amid AI Memory Surge

Sandisk (NASDAQ: SNDK) saw its shares climb 4.2% on Monday morning after Melius Research initiated coverage on the memory maker with a 'Buy' rating and a price target of $1,350. This target suggests a potential 36% upside from recent trading levels, following a week where the stock closed at an all-time high near $990. The bullish outlook is rooted in the ongoing artificial intelligence revolution. Melius suggests that the demand for high-bandwidth memory, which works in tandem with AI chips, is creating unusual profit margins and a growth trajectory that may persist through the end of the decade. Historically, the semiconductor industry has been characterized by volatile cycles of boom and bust. While many investors expect a traditional down-cycle to follow the current peak, Melius contends that the AI shift represents a fundamental change in market structure, which should justify higher earnings multiples for the company. Financial data indicates a significant recovery for Sandisk, which returned to profitability this year after three years of losses. Analysts project earnings of $41.75 per share for 2026, with a substantial spike to over $107 in 2027. Even long-term forecasts for 2030 estimate earnings of $43 per share, suggesting a higher baseline than previous industry cycles. The stock's current valuation, trading under 25 times earnings, is viewed by Melius as an attractive entry point for investors betting on the long-term infrastructure requirements of the AI sector.