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The growth trajectory in the AI hardware sector goes well beyond graphics cards, with memory suppliers fast becoming Wall Street’s preferred way to play the next leg of buildouts. This was again evident earlier this week when Barclays upgraded Sandisk (SNDK) to "Overweight" and hiked its target price to $2,300, noting that the company's business models could be game changers in the world of memory manufacturing.
In its note on the stock, Barclays analyst Tom O'Malley called memory and storage "the most attractive vertical below accelerators." According to the analyst, the memory industry will continue generating pricing upside due to the supply and demand imbalance that could last until the end of calendar 2027. In reaction, SNDK shares climbed amid the day's premarket session as investors began taking a closer look at both the company's pricing trends and its uniquely structured business model.
