Group 1 - Morgan Stanley raised its price target on Sandisk stock to $96 with an overweight rating, leading to a 13.6% increase in stock price [1][3] - Sandisk is considered a top pick in the semiconductor space due to the growing demand for NAND flash memory, particularly as AI companies shift focus to AI inference [3][4] - By 2029, it is estimated that 34% of global NAND production will be allocated for AI purposes, potentially adding $29 billion in NAND sales globally [5] Group 2 - Sandisk has not reported a profit since 2022, accumulating $1.6 billion in losses over the past year, and currently has negative free cash flow [6][7] - Despite the current financial challenges, there is optimism as earnings are expected to turn positive this fiscal year, with a valuation of approximately 21 times current year earnings if growth aligns with Morgan Stanley's expectations [7]
Why Sandisk Stock Popped Today