# Barclays analyst Tom O'Malley upgraded SanDisk to Overweight from Equalweight.

*business · news · 2026-05-27 · Benzinga*

## Key points

- SanDisk has signed three contracts totaling $42 billion in minimum revenue last quarter.
- Some SanDisk contracts now extend as far as 2031 and include over $11 billion in financial guarantees.
- New contract structures blend fixed near-term with variable long-term pricing, benefiting SanDisk if prices rise.
- Barclays upgraded SanDisk and raised its price target dramatically, citing these strategic contract changes.

Barclays Highlights Long-Term Contract Strategy Barclays analyst Tom O'Malley upgraded SanDisk to Overweight from Equalweight and raised his price forecast to $2,300 from $1,200, arguing that the company's contract structure is changing the economics of the memory industry. O'Malley said SanDisk's long-term agreements provide customers with both supply visibility and pricing flexibility through contracts extending as far as 2031. The deals include quarterly volume commitments and combine fixed near-term pricing with variable long-term pricing, allowing SanDisk to benefit if memory prices continue rising. Barclays added that SanDisk signed three contracts last quarter carrying roughly $42 billion in minimum contractual revenue, backed by more than $11 billion in financial guarantees across five agreements. Traders also continued reacting to broader AI storage "supercycle" themes that frame rising memory prices as a longer-term structural shift rather than a temporary spike. SanDisk Emerges As A Pure-Play AI Memory Story SanDisk remains one of the world's largest NAND flash memory suppliers and manufactures its chips through a joint venture with Kioxia in Japan. Investors increasingly view the company as a direct way to gain exposure to AI-driven storage demand because enterprise SSD shortages and data-center expansion can quickly translate into stronger pricing power for memory suppliers. Earnings & Analyst Outlook Looking further out, the next major catalyst for the stock arrives with the August 13, 2026 (estimated) earnings report. EPS Estimate: $32.99 (Up from 29 cents YoY) Revenue Estimate: $8.16 Billion (Up from $1.90 Billion YoY) Valuation: P/E of 54.3x (Indicates premium valuation relative to peers) Analyst Consensus & Recent Actions: The stock carries a Buy rating with an average price forecast of $1064.11. Recent analyst moves include: Citigroup: Buy (Raises forecast to $2025.00) (May 19) Bernstein: Outperform (Raises forecast to $1700.00) (May 4) Citigroup: Buy (Raises forecast to $1300.00) (May 1) Price Action SNDK Price Action: SanDisk shares were up 0.66% at $1600.00 at the time of publication on Wednesday. The stock is trading near its 52-week high of $1641.74, according to Benzinga Pro data. Photo via Shutterstock

**Companies:** SanDisk
**Countries:** Japan

[Read the full story on Benzinga](https://www.benzinga.com/trading-ideas/movers/26/05/52809807/whats-going-on-with-sandisk-stock-wednesday-2)

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