Sandisk (SNDK +2.15%) stock is sinking in Wednesday's trading. The company's share price was down 11% as of 2 p.m. ET amid a 0.1% gain for the S&P 500 and a 0.2% decline for the Nasdaq Composite.
Sandisk stock is heading lower today as investors sell out of artificial intelligence chip stocks and buy back into top AI software names. While the stock is getting hit with a big pullback today, Sandisk actually got a big price-target increase from a leading investment firm.
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AI investment rotation is weighing on Sandisk stock today
Sandisk stock has been a massive winner this year, with its share price up 759% year to date as of this writing even after some recent pullbacks. Bullish momentum for AI semiconductor stocks has been incredibly strong this year, and leading memory chip stocks have been especially strong performers. Sandisk has been one of the market's biggest winners, but it's seeing some bearish pressures today as investors take profits and reallocate some of their investment dollars into AI software plays.
NASDAQ: SNDK
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This top investment firm just gave Sandisk a massive price target hike
Before the market opened this morning, Bank of America's investment wing published new coverage on Sandisk stock and issued a huge price target increase. The firm maintained a buy rating on Sandisk and raised its one-year price target from $2,100 per share to $2,500 per share.
B of A's analysts see Sandisk benefiting from a "strong for longer" dynamic when it comes to supply and-demand trends and pricing for NAND memory chips. The firm sees demand for NAND memory chips remaining very strong for 2027, which should translate to more strong sales and earnings growth for Sandisk.
