SynopsisUS stock futures edged higher after a tech-led selloff, as investors monitored Iran tensions and key retail earnings for clues on consumer health. AgenciesSanDisk Corp has become one of the most dramatic winners of the AI trade, with the stock up more than 3,400% in one year as investors bet on rising demand for flash memory used in data centres and AI inference workloads.

74% so far this year, which makes it the best-performing stock in the S&P 500 in 2026, ahead of Dell Technologies, which is up nearly 300%. According to a report on TheStreet, JPMorgan has reinstated coverage on SanDisk with an Overweight rating and a price target of $2,250 on August 16.

JPMorgan’s bullish view rests on three broad points: SanDisk’s role in the global NAND flash market, rising AI-led demand for enterprise data centre storage, and a new business model that gives the company more earnings visibility. Why JPMorgan is bullish?

SanDisk is one of the top five global NAND flash memory suppliers. NAND flash is used in storage products across phones, computers, servers and data centres.

2 zettabytes by 2030. A key driver is AI inference, including storage needs linked to KV cache workloads.

The market is also paying attention to SanDisk’s new business model. The company has signed NBM agreements with eight key customers.

These agreements include committed volumes and minimum financial guarantees. SanDisk’s agreements now cover about 50% of bits in fiscal 2027 and roughly two-thirds of bits in fiscal 2028.

This gives investors more confidence that future demand and revenue will be less volatile than in past cycles. Technology is another reason behind the rally.

SanDisk has outlined its BiCS9 and BiCS10 QLC NAND roadmap. BiCS10 is expected to deliver a 60% increase in bit density compared with BiCS8.

Higher density helps reduce cost per bit and allows the company to offer more storage in smaller physical space. This becomes more useful as data centres try to manage rising AI storage needs.

SanDisk is also working on High Bandwidth Flash technology aimed at AI inference applications. The company is trying to show that it is not only benefiting from better NAND pricing, but also building products for the next phase of AI infrastructure demand.