Storage Shares Rally. SanDisk up over 8% After Goldman Sachs Doubles the PT; Micron up 7%; Western Digital up over 6%; Seagate Tech up over 5%

Storage shares jumped on Monday. SanDisk up over 8%; Micron up 7%; Western Digital up over 6%; Seagate Technology up over 5%.

Goldman Sachs has aggressively raised the target price for SanDisk, believing that the NAND flash memory market will continue to experience a supply-demand imbalance until 2026, and the pricing power and profit margin explosion potential brought by this super cycle have not yet been fully digested by the market.

On November 10th, Goldman Sachs stated in its latest research report that SanDisk's Q3 performance significantly exceeded expectations, becoming a direct catalyst for boosting market confidence.

Goldman Sachs indicated that behind the strong performance is a fundamental reversal in the NAND flash memory market's fundamentals, the NAND flash memory market is entering a sustained and severe supply-demand imbalance phase, which is expected to last until 2026.

The research report pointed out that this means that NAND manufacturers represented by SanDisk will have significant pricing power, and their gross margins and profitability will experience explosive growth. Goldman Sachs has significantly raised its earnings forecast, believing that the market has not yet fully digested the potential of this super cycle.

Analysts pointed out that in addition to SanDisk's recent performance and guidance far exceeding expectations, the overall price surge in the flash memory market provides strong evidence for Goldman Sachs' optimistic judgment. Goldman Sachs has doubled SanDisk's target price from $140 to $280, which leaves a 16% upside potential from the current stock price level, and maintains a "Buy" rating.