Core Viewpoint - SanDisk Corporation's shares surged due to positive investor sentiment surrounding the company's prospects in a strengthening NAND flash memory market driven by AI data centers and constrained supply conditions [1][2]. Group 1: Market Dynamics - The current NAND cycle is influenced by rising demand from AI data centers, tight supply, and increased enterprise SSD shipments, leading to firmer pricing and margin expansion [2][3]. - Stronger-than-expected data center demand is significantly impacting pricing, alongside rising NAND flash memory content in consumer devices and restrictions on Chinese NAND output [3][4]. - A reluctance among suppliers to add capacity is contributing to an undersupplied NAND market, supporting higher prices [4]. Group 2: Financial Projections - Analyst Wamsi Mohan raised the price forecast for SanDisk from $59 to $125, maintaining a Buy rating on the stock [1]. - Cloud revenue is projected to exceed a $400 million quarterly run rate in early 2026, with cloud expected to account for about 20% of total revenue in 2026, up from 13% in 2025 [5][6]. - Sustained double-digit growth in cloud end-market bit growth is anticipated for 2026 and 2027, with cloud bit pricing expected to rise due to tight supply and AI-driven demand [5]. Group 3: Segment Analysis - The Client and Consumer segments are expected to benefit from tight supply and cost reductions, although to a lesser extent than the Cloud segment [6]. - Consumer segment ASPs are projected to decline by 4% in 2026 and 9% in 2027, while Client segment ASPs are expected to remain flat in 2026 and decrease by about 7% in 2027 [6].