SNDC

Sandisk Corp. (SNDK, Financials), the flash-memory and storage company, could benefit from tight NAND supply through 2028 as artificial intelligence data centers increase demand for solid-state storage, according to Citi Research.

The forecast comes after Micron Technology's fourth-quarter earnings, which revealed a 42% sequential increase in NAND revenue. Bit shipments rose by 10%, while prices grew by almost 30%, above Citi's 20% average expectation.

In 2026, Micron anticipates that the growth of its NAND supply will lag behind that of the industry as a whole. Industry NAND bit shipments are predicted to rise at a mid-20% rate in 2027 and 2028, notwithstanding supply constraints.

If AI infrastructure continues to drive storage demand, that scenario might sustain pricing and enhance Sandisk's profits visibility.

Atif Malik, a Citi analyst, explicitly mentioned data centers offloading AI key-value cache tasks with less expensive SSDs. The company kept Sandisk's $2,100 price goal and buy rating.

Micron's stock dropped approximately 1.6% on Thursday, while Sandisk's was down nearly 0.7% at $1,728.

Next, investors will keep an eye on NAND prices, industry bit growth, and the need for data center storage connected to AI to see if supply constraints can last until 2028.