Investing.com -- Citi raised its price target on memory chipmaker SanDisk to $2,500 from $2,025, citing an improving NAND pricing outlook after Micron posted better-than-expected quarterly results that pointed to tightening conditions across the storage chip market.

Analyst Atif Malik said Micron’s results, which beat estimates on both sales and gross margins, offered a positive read-through for the broader NAND sector.

Micron reported NAND bit shipments up mid-single digits quarter-on-quarter and average selling prices (ASPs) surging in the mid-80% range, reflecting tight industry conditions and a favorable product mix.

Malik noted that NAND industry demand is exceeding supply, with tightness anticipated to persist beyond 2027, driven by AI-related demand across all segments and structural supply constraints.

Micron said it expects its own 2026 NAND supply growth to come in below the industry average.

“We remain constructive on favorable NAND supply/demand fundamentals on durable AI-led datacenter demand (KV cache offloading to more cost-effective SSDs),” Malik wrote. Citi kept its estimate for 2026 industry NAND bit supply growth at roughly 20%.

The bank also opened a 90-day short-term upside view on Sandisk shares, flagging several near-term catalysts including industry earnings, the Flash Memory Summit conference in August, and Sandisk’s own investor day that month, where Citi expects updated commentary on demand, technology roadmap, and capital returns.

Micron’s shares jumped over 17% in premarket trading on Thursday. The stock now commands a market capitalization north of $1 trillion, capping a more than 700% gain over the past year.

Revenue climbed to $41.46 billion, more than quadrupling from $9.3 billion a year earlier and well above the $35.84 billion analysts had forecast, according to LSEG. Adjusted earnings per share came in at $25.11, topping estimates of $20.78.

For the current quarter, Micron guided for revenue of approximately $50 billion — nearly five times the $11.3 billion it reported in the year-ago period, and sharply above the $43.58 billion consensus.

Growth was broad-based across Micron’s four business segments, but the data center unit led the way, with revenue surging more than sevenfold to $11.5 billion from $1.53 billion a year ago.