Bank Of America Predicts SanDisk Stock Price To Hit $2500: Buy?
Memory giant Sandisk Corporation (SNDK) reported stellar quarterly earnings last week, with revenue rising 51% from the previous quarter and 372% from a year earlier at $8.97 billion. Revenue for the full fiscal year rose nearly 175% to $20.25 billion. Despite reporting higher-than-anticipated revenue, Sandisk Corporation (SNDK) stock price took a hit right after. Despite the stock price dip, Bank Of America continues to remain bullish on the company, predicting the stock to hit $2500. Let’s discuss why.
Why Is Bank Of America Bullish On SanDisk Stock Price?
Sandisk’s revenue surge comes amid a larger memory chip demand. The AI boom with increased spending on data centers has led to a global memory shortage and memory manufacturers are reaping big money from the rising demand. While memory demand is higher than ever before, investors are still skeptical. This is because memory markets have historically been cyclical.
According to Bank of America, SanDisk’s earnings base is getting larger and a lot more durable. The financial institution also does not see any evidence of pricing and profitability being at a peak.
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