Bank of America is telling clients the memory shortage is nowhere near over — and that SanDisk Corp. (SNDK) is the cleanest way to own it.

On Wednesday, bank analyst Wamsi Mohan reiterated a Buy rating on SanDisk and lifted his price objective from $2,100 to $2,500 — a target that sits about 25% above where the stock changed hands at the time of this writing.

The upgrade to the target is not a call on the next print alone. It is a call on how long the imbalance lasts.

Why BofA Thinks The Squeeze Holds

“We expect supply/demand imbalance in the NAND market to remain through 2027,” Mohan wrote. Pricing, he says, holds up through at least mid-2027.

For the June quarter, he models roughly 13% sequential bit growth and a 35% sequential jump in average selling prices.

That price trajectory runs hotter than what SanDisk itself has signaled.

Mohan’s June-quarter revenue and earnings estimates of $9.1 billion and $37.01 sit above the Street at $8.35 billion and $34.26, and well above company guidance of $7.75 billion–$8.25 billion in revenue and $30–33 in earnings per share.

The bit-growth figure Mohan models tops the NAND bit growth Micron Technology Inc. (MU) reported in its most recent quarter, though he notes Micron posted a steeper sequential price gain than he expects from SanDisk.

The difference, he wrote, comes down to the product mix and how many long-term contracts are signed during the period.

Those contracts — what SanDisk calls its New Business Model, or NBM — give visibility past fiscal 2028. They’re also built to keep gross margin inside the company’s target range.

Mohan frames it as a win-win. Buyers lock in their supply and a measure of price certainty; SanDisk gets a clearer read on future revenue.

Roughly 15% of revenue comes from consumer markets, which Mohan expects to stay contract-shy. Most cloud and client customers, he thinks, will sign.

The Numbers Behind The $2,500

Mohan says Bank of America kept his valuation multiple at 10 times calendar-2027 earnings but pushed that earnings base up to $252 from $199, which is what carries the price objective to $2,500.

For the fiscal-2027 first quarter, he models $11.5 billion in revenue and $48.55 in earnings, again ahead of the Street, and expects management to guide revenue to $11.25 billion–$11.75 billion with gross margin of 84%–86%.

Strip away the estimate revisions and the message is simpler than the model.

BofA is betting the memory shortage that took SanDisk from a $40 stock to a $2,000-plus one over the past year still has room to run — and that the contracts being signed today are what turn a cyclical spike into something the market can underwrite past 2028.

What Could Break It

The risk Mohan flags most directly is China.

Yangtze Memory Technologies Co., or YMTC, is ramping capacity, and fresh supply is the one thing that could unwind NAND pricing faster than the bulls expect.

His base case assumes YMTC stays focused on serving customers inside China rather than flooding the global market.

The other downside scenarios are the familiar ones for a memory name at the top of a run — a sharp price drop on oversupply, slower adoption of AI-enabled consumer devices, and share loss in enterprise SSDs, where SanDisk currently ranks third.

The upside risks cut the other way: an earlier-than-expected point in the upcycle, faster SSD share gains, and a quicker recovery in pricing than models assume.