**[Bank of America Remains Bullish on SanDisk: AI Storage Demand May Drive Sustained Profitability, Target Price Logic Unchanged]** BlockBeats News, August 8 – Following SanDisk's latest earnings report, Bank of America reiterated its bullish rating on the company, stating that the market is underestimating its long-term profitability driven by AI storage demand. Bank of America reaffirmed its "Buy" rating on SanDisk and maintained its target price of $2,500, implying an upside potential of approximately 85% compared to the reference stock price of $1,350.5. This target price is based on an estimated 2027 earnings per share (EPS) of $255 and a price-to-earnings (P/E) ratio of about 10x. SanDisk has previously been regarded by investors as a typical cyclical stock, but Bank of America believes that with the growth of artificial intelligence driving increased demand for data storage and the rising penetration rate of enterprise SSDs, the company's current profitability levels may be more sustainable than the market expects. Earnings data shows that SanDisk's revenue for the fourth fiscal quarter reached $8.97 billion, a quarter-over-quarter increase of 51%, exceeding the company's prior guidance range of $7.75 billion to $8.25 billion. Approximately two-thirds of this growth came from product price increases, while the remainder was attributed to higher storage bit shipments. During the same period, the company's gross margin rose to 84.6%, up from 78.4% in the previous quarter and surpassing the prior guidance range of 79% to 81%. Bank of America projects that SanDisk's EPS for fiscal year 2027 will grow by 229% to $233.85, with revenue increasing by 160% to $52.6 billion. The company expects revenue for the next fiscal quarter to range between $10.3 billion and $10.8 billion, with EPS between $44 and $46, and gross margins expected to remain high at 83% to 85%. Bank of America stated that it has not yet observed clear signs of SanDisk's storage prices and profitability reaching their peak, and the expansion of AI infrastructure may continue to support the storage industry's growth cycle. [Original Link]